Proton X50 coming in Oct 2020, CKD X70 to be cheaper, says AmInvestment

By CARSIFU | 23 July 2019

Like the X70, the X50 will be based on a Geely SUV. In this case, the Bin Yue (seen here and below) will be the Chinese SUV that the X50 will be modelled upon.

KUALA LUMPUR: Proton is expected to introduce the much anticipated X50 SUV in October 2020, according to AmInvestment Research.

The X50, pegged as a smaller SUV than the X70, would launch as a locally assembled model, it said.

An unnamed model, expected to be a Geely-inspired seven-seater MPV, is in the pipeline, it said, adding that the facelifted Saga is due to be introduced later this year.

"These models will be key in shaping the local automotive sector as they come in very attractive price tags and are essential in aiding Proton in its turnaround plan," it said in a note published today.

The research house also expects the production of the X70 in the Tanjung Malim plant in 2H19, to result in a price reduction with the introduction of the locally assembled model.

READ MOREAll abuzz about Proton X50


"We should also see better monthly sales and delivery numbers should the localisation plan takes off, which is positive for Proton’s turnaround plan.

"The group guided that the local content of the X70 will start with 10% will progressively increase to 80% by 2023," it said.

The research house said it is seeing a shift in the general consumer's preferences towards cheaper alternatives, which would benefit Proton and Perodua.

"Market share is expected to expand due to shift in consumer preference towards affordable vehicles with value-added features," it said.

It noted that Proton has captured a year-to-date market share of 14.7%, which comes closer to Honda's 14.9%.

AmInvestment expects Proton to take the second spot in market share behind Perodua by the year-end due to the strong demand for the X70, Iriz and Persona as well as the upcoming refreshed Saga.

It said Proton's buoyant sales performance is translating into a positive spillover effects for DRB-Hicom Bhd.

It recommended a buy rating for DRB-Hicom with a higher fair value of RM3.18.