Proton to Assemble Electric Drive Units and Hybrid Transmissions in Tanjung Malim, Bolstering Malaysia's EV Transition

Proton has confirmed that, in line with the capacity expansion plans for its Tanjung Malim plant, it will locally assemble key components for electric vehicles (EV) and hybrid electric vehicles (HEV), including Electric Drive Units (EDU) and Dedicated Hybrid Transmissions (DHT).

This announcement was issued by DRB-Hicom, following a recent statement from the Ministry of Investment, Trade and Industry (MITI) on the National Automotive Policy (NAP). Earlier, amid market discussions regarding the local assembly (CKD) of BYD vehicles, MITI had reaffirmed the country's automotive investment policies. Proton's move is seen as a proactive response to the government's stance.

Key Highlights:

Localized Assembly: Proton will produce core electrification components in Tanjung Malim, Perak, to support its future lineup of hybrid and fully electric models. 

Core Role of AHTV: This strategic move is anchored in the Automotive High-Tech Valley (AHTV). Proton will play a pivotal role in this project, aiming to establish AHTV as a national-level automotive technology hub encompassing R&D, talent development, and advanced manufacturing. 

Supply Chain Contribution: As Malaysia's first national car brand, Proton's total local procurement exceeded RM17 billion over the past five years (2021–2025). With the acceleration of the electrification transition, procurement value is expected to rise further to RM30 billion between 2026 and 2030.

"We are fully committed to supporting the government's long-term industrial and mobility aspirations by strengthening the local automotive ecosystem, developing Malaysian talent, and contributing to sustainable industry growth," said Tan Sri Syed Faisal Albar, Chairman of Proton and Group Managing Director of DRB-Hicom.

Editor's View: 

Proton's firm commitment to locally assembling EDUs and DHTs goes beyond mere compliance with NAP 2020 requirements. It represents a strategic move to end the long-standing technical dependence on imported components. For Malaysian consumers, local production of these core parts will deliver clear advantages, including significantly lower maintenance costs and improved parts availability for future electric models.

As AHTV takes shape, Tanjung Malim will not only be Proton's production base but also a regional powerhouse for new energy vehicles across Southeast Asia.