PROTON has started local production of the Dedicated Hybrid Transmission (DHT) and Electric Drive Unit (EDU) for its electrified vehicle range, becoming the first automotive manufacturer in Malaysia to produce both critical xEV components locally.
The production milestone was announced during a working visit by the Ministry of Investment, Trade and Industry (MITI) to PROTON’s manufacturing complex in Tanjung Malim, led by Minister Datuk Seri Johari Abdul Ghani and Deputy Minister Sim Tze Tzin.
The minister officially initiated production of the DHT and EDU at the company’s Powertrain Plant after receiving a briefing on PROTON’s future business direction, including upcoming models based on its proprietary Advanced Modular Architecture (AMA) platform.
RM121 Million Investment
According to PROTON, the investment in local DHT and EDU production totals RM121 million.
The new facility is supported by 16 suppliers, with half of them being Malaysian suppliers.
PROTON said the investment will strengthen the local supplier ecosystem while creating skilled employment opportunities and supporting future export growth.
The locally produced DHT and EDU will also increase local ecosystem participation for the Proton e.MAS 7 PHEV, which recently entered local assembly at the PROTON EV Plant in the Automotive High Tech Valley (AHTV).
MITI Calls For Greater Localisation
Speaking during the visit, Johari said Malaysia wants automotive manufacturers to move beyond assembling vehicles by investing in local parts manufacturing and technology development.
He noted that PROTON’s transformation through its partnership with Geely has strengthened the company’s engineering capabilities while benefiting the wider automotive supply chain.
Johari also encouraged other automotive manufacturers operating in Malaysia to source more components locally for their CKD operations, saying the approach would help develop the country’s technical capabilities, create higher-value jobs and reduce Malaysia’s trade deficit.
Preview Of Future AMA Models
During a closed-door briefing, the MITI delegation was also given a preview of PROTON’s future business direction, including strategic initiatives based on the company’s Advanced Modular Architecture (AMA) platform.
While no further details were revealed, the briefing signals that PROTON is preparing the next phase of its product strategy around the proprietary vehicle architecture.
PROTON deputy chief executive officer Dato’ Ir. Abdul Rashid Musa said the company is now investing beyond vehicle production into engineering capabilities, advanced manufacturing and supplier development.
He added that local production of the DHT and EDU, together with the development of the Automotive High-Tech Valley, demonstrates how collaboration between PROTON, MITI and industry partners is creating higher-value manufacturing activities while strengthening Malaysia’s competitiveness in electrified mobility.
CarTok Editor’s Note
The local production of the DHT and EDU is arguably a bigger industrial milestone than assembling another vehicle model.
CKD vehicle assembly is an important first step, but manufacturing key powertrain components requires significantly higher investment, engineering capability and supplier development. These are also among the highest-value components in an electrified vehicle.
Just as importantly, PROTON is not doing this alone. Having eight Malaysian suppliers involved in the programme suggests the localisation effort is moving deeper into the supply chain.
As Malaysia pursues its Next-generation Vehicle (NxGV) ambitions, the long-term measure of success is not about how many electrified vehicles are assembled here, but how much of their technology and value creation can be produced locally.
