Proton Saga CKD Production to Commence in Egypt by December, First Batch of 120 Packs Shipped

Proton has confirmed plans to assemble its Saga model in Egypt through a partnership with Ezz Elsewedy Automotive Factories (ESAF). This collaboration follows a deal made with local distributor Ezz Elarab in November of last year. The project, valued at over USD15 million (approximately RM65 million), aims to produce up to 50,000 units in the near future.

In the latest update, the first batch of 120 CKD (completely knocked down) kits for the Saga has been dispatched to Egypt, where Proton has been reestablishing its presence since 2018. Currently, the Saga is the sole Proton model available in Egypt, with three different versions of the facelifted sedan being sold since December 2020. Prior to this, all cars were imported fully assembled from Malaysia.

Proton’s deputy CEO, Roslan Abdullah, highlighted the importance of expanding export operations as part of the company’s long-term vision. With the domestic market reaching its limits, Proton is focusing on international markets where demand is expected to rise. The addition of the CKD plant in Egypt increases Proton’s overseas assembly facilities to five.

This move will allow Proton to turn Egypt into a manufacturing hub for the Middle East and North African regions, an idea that had been in the works for some time.

The project also supports Egypt’s Automotive Industry Development Programme (AIDP), which was introduced in November to encourage local assembly while reducing reliance on fully imported vehicles. Proton has been active in the Egyptian market since 2004, exporting nearly 17,000 units over that time. In 2024, they aim to ship 1,400 units, and once local assembly begins by December, sales are projected to hit 5,000 units in 2025.

Steven Xu, Proton’s international sales director, pointed out that assembling the Saga locally not only aligns with Egypt’s policy to reduce imports but also positions Proton for future growth in the region. As new models are introduced, Egypt could become a key export hub for Proton vehicles across North Africa.

Proton anticipates earning RM570 million from CKD kit exports to Egypt over the next three years, with an additional RM20 million expected from parts exports. Additionally, the local economy is set to benefit from up to RM180 million in duties and taxes.

Proton now operates five international CKD and SKD projects across Egypt, Pakistan, Bangladesh, Sri Lanka, and Kenya. With exports hitting around 5,000 units in 2022, the company plans to double that figure to 10,000 units in the near future, while continuing its expansion into 20 countries.