Suzuki to supply "compact car" to Proton through CKD; Maruti could export kits - IAB Report

Expected to be an A-segment offering. 

Suzuki Motor Corporation (SMC) has signed a memorandum of understanding with Malaysian carmaker Proton Holdings Berhad (Proton) for the supply of KD (Knocked Down) components "for a model of Suzuki automobile to Proton".

The model, which is confirmed to be a "compact passenger car" will be manufactured by Proton at its Tanjung Malim plant, from August 2016. According to local media reports, the model is likely to be an A-segment offering, and chances are high that Proton may sell the Alto or Celerio.

Proton will also be responsible for distributing and selling the car under its own brand and sales network in Malaysia. A statement released by the companies says that "other additional models will be mutually studied by PROTON and SMC". Proton could also source engines and transmissions from Suzuki in the future for its own models, the statement said.

Maruti Suzuki, Suzuki's most important business, could supply CKD kits of the compact car to Malaysia. Models such as the Alto 800 and Alto K10 are exported as far as Algeria while the India-made Ciaz is sold in Mexico and South Africa.

Also read: Maruti S-Cross shows new features in video

At the moment, VW India supplies the Polo and Polo Sedan (Vento) to Malaysia, Hyundai exports the i10 from its Chennai plant and Tata Motors sells the Xenon and Prima range through partner DRB-HICOM in the Malaysian market.

SMC-Proton MoU Press Release

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