Geely and Proton: Pioneering the ASEAN EV Revolution – A High-Growth Investment Opportunity

The automotive industry is undergoing a seismic shift, and Geely and Proton are at the forefront of this transformation in Southeast Asia. As the ASEAN electric vehicle (EV) market accelerates toward a projected $6.23 billion valuation by 2030 (CAGR of 32.73% from 2025–2030), the strategic partnership between Chinese automaker Geely and Malaysia's Proton is creating a compelling investment opportunity. By combining Geely's technological expertise with Proton's regional footprint, the duo is not only reshaping the ASEAN automotive landscape but also positioning themselves to capitalize on one of the fastest-growing markets in the world.

Strategic Restructuring: From ICE to EVs

Proton, once a symbol of Malaysia's struggling automotive ambitions, has undergone a dramatic transformation under Geely's ownership. Since 2017, Geely's $10 billion investment has revitalized Proton's operations, culminating in the launch of its first EV, the e.Mas7, in December 2024. Priced between RM105,800 and RM119,800, the e.Mas7 is currently imported as a completely built-up unit from Geely's Chinese factories. However, the game-changer is Proton's Tanjung Malim EV plant, set to begin local production by late 2025. This shift to localized manufacturing will reduce costs, create supply chain synergies, and align with Malaysia's goal of achieving 15% EV sales by 2030.

Geely's restructuring efforts extend beyond Proton. The recent privatization of its premium EV brand, Zeekr, at a $6.83 billion valuation, reflects a broader strategy to streamline operations and focus on high-margin segments. While some investors have criticized the deal as undervalued, Geely's control of 65.7% of Zeekr ensures it can drive innovation in the premium EV space. Meanwhile, Geely Auto remains focused on mass-market ICE and EVs, with Proton's new high-tech engine assembly line in Malaysia supporting ICE exports to markets like Kenya and Pakistan. This dual strategy—balancing ICE for short-term revenue with EVs for long-term growth—positions Geely to navigate the transition period effectively.

ASEAN Market Dynamics: A Goldmine for EVs

The ASEAN EV market is no longer a niche—it's a battleground for global automakers. Thailand, Indonesia, and Singapore are leading the charge, with Thailand targeting 1 million EVs annually by 2027 and Indonesia leveraging its nickel resources to attract EV manufacturers. Proton's e.Mas7 is already being exported to Mauritius, Nepal, and Brunei, but the real opportunity lies in local production. By assembling EVs in Malaysia, Proton can tap into ASEAN's preferential trade agreements and avoid tariffs that currently make EVs 2–3 times more expensive than ICE models.

Government incentives are turbocharging this growth. Malaysia's import duty exemptions for EVs until 2025, Indonesia's tax breaks for local EV production, and Singapore's aggressive charging infrastructure rollout (60,000 public stations by 2030) are all creating a fertile environment for EV adoption. Proton's CEO, Li Chunrong, has emphasized the inevitability of the EV shift: “Every major economy is replacing combustion engines with EVs. Proton must lead this transition or risk obsolescence.”

Financial and Competitive Edge

Proton's 10-Year Plan under Geely has already delivered tangible results. By 2019, Proton had regained a 16.7% market share in Malaysia, its first profitable year in nine years. Cost-cutting measures, including reducing warehouses from 16 to 4 and selling 1,000 company cars, have improved operational efficiency. Meanwhile, Geely's R&D investments in EV platforms and battery technology are translating into competitive advantages. The Global Modular Architecture (GMA), co-developed with Geely, underpins Proton's new EV lineup, ensuring scalability and cost efficiency.

Competitively, Geely is outmaneuvering traditional players. Japanese automakers like Toyota and Honda dominate ASEAN's ICE market but lag in EVs. Chinese rivals such as BYD and Tesla are present but face logistical challenges in localization. Proton's e.Mas7, with its Malaysia-centric design and pricing, is uniquely positioned to capture market share. Moreover, Geely's expansion of the Smart and Zeekr brands in Malaysia caters to premium segments, diversifying its revenue streams.

Investment Thesis: A High-Conviction Play

For investors, the case for Geely and Proton is clear:
1. Growth Catalysts: The ASEAN EV market is set to grow 32.73% annually through 2030. Proton's local production and supply chain partnerships will drive volume and margins.
2. Strategic Positioning: Geely's control of Zeekr, Smart, and Proton creates a multi-tiered EV portfolio. Proton's focus on affordability and localization gives it an edge over global competitors.
3. Policy Tailwinds: Government incentives and carbon reduction targets are accelerating EV adoption. Proton's alignment with Malaysia's 2030 EV goals ensures regulatory support.
4. Financial Resilience: Proton's cost discipline and Geely's R&D spending provide a strong foundation for long-term profitability.

Risks and Mitigations

While the outlook is bullish, risks remain. EV adoption in ASEAN is still nascent, with 40% of consumers preferring ICE vehicles. Infrastructure gaps, such as limited charging networks, could slow growth. However, Proton's partnerships with Chinese suppliers and government-backed charging initiatives are addressing these challenges. Geely's recent restructuring of Zeekr also signals a commitment to long-term efficiency.

Conclusion: A Win-Win for Geely and ASEAN

Geely and Proton's collaboration is a masterclass in strategic transformation. By leveraging Geely's global expertise and Proton's regional insights, they're not just surviving the EV transition—they're leading it. For investors, this represents a rare opportunity to bet on a high-growth sector with strong tailwinds. As ASEAN's EV market surges, those who invest early in Geely and Proton's ecosystem stand to reap significant rewards.