Proton’s re-entry into SA is teetering on the brink due to an onslaught of Chinese and Indian imports. Their presence has forced the Malaysian carmaker to reconsider its plans and prompted dealer Combined Motor Holdings (CMH) to join a growing chorus urging state intervention to rescue local producers.
Proton, which made its comeback into SA in 2022 after a decade-long hiatus, has not found joy in the domestic market despite the backing of Chinese parent company Geely — one of the world’s largest car manufacturers — which also owns top brands like Volvo.
One of the country’s largest car showroom owners, vying with Motus and Bidvest’s McCarthy, CMH was appointed as importer and distributor of Proton vehicles for Southern Africa.
Its CEO, Jebb McIntosh, said the partnership with Proton has been “challenging” and the parties were reassessing its options.
“The Proton import and distribution operation has continued to be challenging and costly. Current inventory will be sold during the first half of the coming year, and thereafter the group and the Malaysian manufacturer will decide on the way forward,” McIntosh said in his letter to shareholders published in the group’s annual report on Wednesday.
The company, which has 43 retail motor dealerships representing 29 brands sold through operations in Gauteng, KwaZulu-Natal and Western Cape, says imports have distorted the market.
McIntosh, an industry veteran of about 50 years, said local producers were under extreme pressure from Chinese and Indian imports, and he warned of job losses should help from the government not come through.
“At the manufacturer level, the unrestricted proliferation of Chinese and Indian vehicle imports has placed extreme pressure on local producers, and many jobs may be lost unless there is more government support,” said McIntosh.
“Making matters worse for both motor manufacturers and retailers has been the phenomenal entry of importers, with the result that although the market has shown no growth in five years, there are at least a dozen more players vying for a share.”
CMH sells both new and used cars across its vast network and said several of its dealerships have undergone “costly restructuring and repositioning” to take advantage of brand and product changes, laying bare the market dynamics and how car manufacturers are responding to the changing landscape.
“Ford is now more focused on the light commercial market and, although it has shown growth in various segments, has a more limited scope.
“Nissan is no longer producing its previously very popular and affordable half-ton and one-ton pickups. Some of its key models sourced from Japan have been discontinued because they are no longer affordable locally,” McIntosh said.
“Volvo’s stated intention to focus on electric and hybrid models has severely hampered its local attraction. The dealer network has been cut from 25 dealers to seven, which will operate only in the major metropolitan areas.
Update: May 1 2025
This story has been updated with new information.
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