Proton expands global footprint with locally assembled Saga in Egypt

Proton has officially launched a locally assembled version of its Proton Saga in Egypt, marking a significant step in the Malaysian automaker’s global expansion strategy. The move comes as part of a long-standing partnership with Ezz Elarab Group, which has been distributing Proton vehicles in Egypt for two decades.

The announcement follows the opening of Ezz Elarab Elsewedy Automotive Factories (ESAF), a new CKD (completely knocked down) assembly plant in Cairo, inaugurated in November 2023 by Malaysian Prime Minister Anwar Ibrahim. The plant is expected to play a crucial role in boosting local vehicle production and industrial growth in Egypt.

Proton’s latest move signals a renewed focus on international markets, particularly in regions like the Middle East and Africa, where demand for affordable, reliable vehicles remains strong. The Proton Saga—first introduced in 1985 and now in its 40th year of production—has been one of the brand’s most successful models, with over 2 million units sold globally.

Egypt, in particular, has emerged as a key market for Proton. The company reported a 34% increase in export sales for the Saga in the past year, reaching 2,906 units in 2024, compared to 2,164 units in 2023. Despite economic challenges, Egypt’s large population and recovering automotive marketmake it a strategic hub for Proton’s expansion.

The ESAF CKD plant, where the Saga will be assembled, represents a $50 million investment and has an annual production capacity of 40,000 vehicles. The facility is expected to contribute to Egypt’s broader industrial development goals, with plans to increase local sourcing of componentsand eventually expand into electric vehicle (EV) production.

Industry leaders and government officials attended the launch event in Cairo, including:

• H.E. Dato’ Tarid Sufian, Malaysia’s Ambassador to Egypt

• Hisham Ezz Elarab, Chairman of ESAF

• Ahmed Elsewedy, Board Member of ESAF

• Dr. Li Chunrong, CEO of Proton

During the event, Dr. Li Chunrong noted that while the Proton Saga remains the company’s primary focus in Egypt, there are plans to explore the introduction of SUVs and new energy vehicles (NEVs) when market conditions allow.

“In 2024, Proton’s export volume grew by 31.1%, with Egypt playing a crucial role in that growth,” he said. “This success reinforces our commitment to making exports a key pillar of our future strategy.”

While Proton’s expansion in Egypt presents clear opportunities, the company also faces a competitive and evolving automotive market. Major global brands, including Japanese, Korean, and European manufacturers, have long-established footholds in the country.

Proton’s success will likely depend on its ability to position the Saga as a cost-effective alternativewithout compromising on quality. Affordability and reliability have been Proton’s selling points in other international markets, and the company will need to build strong aftersales support and local trust to compete effectively.

Despite these challenges, local distributor Ezz Elarab Group remains confident in Proton’s potential. Eng. Bassem Ashmawy, General Manager of Proton Egypt, highlighted the brand’s existing customer base, with over 18,000 Proton vehicles already on Egyptian roads.

“For the past 20 years, Proton has built a reputation in Egypt for efficiency and reliability,” he said. “With local assembly now in place, we are confident the new Saga will continue that legacy.”

The launch of the locally assembled Proton Saga marks a significant moment for both Proton and Egypt’s automotive sector. With plans for expansion, potential new models, and a growing production base, Proton is making a long-term bet on the Egyptian market.

However, as the company looks to scale up operations, it will need to navigate economic fluctuations, consumer preferences, and increasing competition. Whether the Saga can replicate its Malaysian success story in Egypt remains to be seen, but for now, Proton has made its presence known in the region’s evolving automotive landscape.