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Proton invests US$ 9.3 million to double NEV plant capacity in Malaysia
Paul Tan, 1 June '26Headlines 1 June '26
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Proton has announced plans to expand the operational capacity of its New Energy Vehicle (NEV) assembly plant in Tanjung Malim following demand for its e.MAS electric vehicle (EV) range.
The expansion, which will involve an additional investment of MYR 37 million (US$ 9.3 million), comes less than a year after the facility commenced operations and forms part of the company's localisation strategy for electrified vehicles.
The NEV plant, located within Proton's complex at the Automotive High-Tech Valley (AHTV) in Tanjung Malim, was inaugurated in September last year following an initial investment of MYR 82 million. Situated on a 5.57-acre site, the facility incorporates robotics, cloud-based production systems, and Industrial Internet of Things (IoT) technologies. These systems enable multiple vehicle models to be assembled on a single production line.
Although the facility was originally developed with an annual production capacity of 20,000 vehicles, it was designed to accommodate future expansion. Following the latest investment, annual production capacity will increase to more than 42,000 units.
The expansion is being driven by demand for Proton's e.MAS range, particularly the Proton e.MAS 5. Accounting for approximately 73% of Proton's electrified vehicle sales during the period, the e.MAS 5 is positioned in the market with a combination of affordability, practical features, connected technologies, and EV performance. It is also among the most affordable new EVs available in the Malaysian market.
Combined sales of the Proton e.MAS 5, e.MAS 7, and e.MAS 7 PHEV increased by 329% between January and April 2026 compared with the corresponding period last year. The increase contributed to Proton's share of Malaysia's electrified vehicle segment and was accompanied by rising demand in both domestic and export markets.
To support demand and reduce customer delivery times, Proton confirmed that the e.MAS 5 will soon join the e.MAS 7 on the local assembly line in Tanjung Malim. Although the company has not disclosed an exact date for the commencement of local assembly of the e.MAS 5, production is expected to begin as part of the plant's expanded operations.
The e.MAS 7 PHEV is also expected to enter local assembly in the future. Proton has previously stated its intention to locally assemble all products based on the Global Modular Architecture (GMA) platform at the site. In addition, the NEV facility is expected to support vehicle production for other brands within the Geely Group, including Zeekr.
The facility currently employs 391 workers and is expected to generate additional employment opportunities as production activities expand. Proton stated that the investment will contribute to talent development, job creation, and Malaysia's automotive supply chain while supporting the growth of the country's EV ecosystem.
"Customer demand has exceeded our initial projections, and this has accelerated our plans to localise production capacity. Beyond increasing production volume, this investment also reflects Proton's commitment to helping develop Malaysia's EV ecosystem, by expanding local assembly activities, we are also creating opportunities for talent development, job creation, and the strengthening of the local automotive supply chain as Malaysia moves towards a more electrified future," said Proton Deputy Chief Executive Officer Datuk Abdul Rashid Musa.
The latest investment is also expected to support Tanjung Malim's role as an NEV manufacturing location within the Geely Group network. Proton stated that the expansion forms part of its broader plans relating to electrification, manufacturing technologies, and mobility products.
As EV adoption continues to increase across Malaysia and the wider ASEAN region, Proton's expansion plans reflect the increasing role of local EV manufacturing and the company's plans for its electrified vehicle operations in the region.
The expansion, which will involve an additional investment of MYR 37 million (US$ 9.3 million), comes less than a year after the facility commenced operations and forms part of the company's localisation strategy for electrified vehicles.
The NEV plant, located within Proton's complex at the Automotive High-Tech Valley (AHTV) in Tanjung Malim, was inaugurated in September last year following an initial investment of MYR 82 million. Situated on a 5.57-acre site, the facility incorporates robotics, cloud-based production systems, and Industrial Internet of Things (IoT) technologies. These systems enable multiple vehicle models to be assembled on a single production line.
Although the facility was originally developed with an annual production capacity of 20,000 vehicles, it was designed to accommodate future expansion. Following the latest investment, annual production capacity will increase to more than 42,000 units.
The expansion is being driven by demand for Proton's e.MAS range, particularly the Proton e.MAS 5. Accounting for approximately 73% of Proton's electrified vehicle sales during the period, the e.MAS 5 is positioned in the market with a combination of affordability, practical features, connected technologies, and EV performance. It is also among the most affordable new EVs available in the Malaysian market.
Combined sales of the Proton e.MAS 5, e.MAS 7, and e.MAS 7 PHEV increased by 329% between January and April 2026 compared with the corresponding period last year. The increase contributed to Proton's share of Malaysia's electrified vehicle segment and was accompanied by rising demand in both domestic and export markets.
To support demand and reduce customer delivery times, Proton confirmed that the e.MAS 5 will soon join the e.MAS 7 on the local assembly line in Tanjung Malim. Although the company has not disclosed an exact date for the commencement of local assembly of the e.MAS 5, production is expected to begin as part of the plant's expanded operations.
The e.MAS 7 PHEV is also expected to enter local assembly in the future. Proton has previously stated its intention to locally assemble all products based on the Global Modular Architecture (GMA) platform at the site. In addition, the NEV facility is expected to support vehicle production for other brands within the Geely Group, including Zeekr.
The facility currently employs 391 workers and is expected to generate additional employment opportunities as production activities expand. Proton stated that the investment will contribute to talent development, job creation, and Malaysia's automotive supply chain while supporting the growth of the country's EV ecosystem.
"Customer demand has exceeded our initial projections, and this has accelerated our plans to localise production capacity. Beyond increasing production volume, this investment also reflects Proton's commitment to helping develop Malaysia's EV ecosystem, by expanding local assembly activities, we are also creating opportunities for talent development, job creation, and the strengthening of the local automotive supply chain as Malaysia moves towards a more electrified future," said Proton Deputy Chief Executive Officer Datuk Abdul Rashid Musa.
The latest investment is also expected to support Tanjung Malim's role as an NEV manufacturing location within the Geely Group network. Proton stated that the expansion forms part of its broader plans relating to electrification, manufacturing technologies, and mobility products.
As EV adoption continues to increase across Malaysia and the wider ASEAN region, Proton's expansion plans reflect the increasing role of local EV manufacturing and the company's plans for its electrified vehicle operations in the region.