More in business

Business

Thursday, 19 April 2018 | MYT 7:40 PM

Proton plots return to Iranian car market

KUALA LUMPUR: Proton Holdings Bhd has signalled its intention to return to the Iranian car market with a new plan to set up a car assembly business there.

Parent company DRB-Hicom Bhd told the exchange today that its 50.1% unit had on Apr 10 set up Proton Motor Parsian Company (Ltd) (PMPC).

“The intended activities of PMPC are to undertake business in the field of car assembly with completely knocked down and semi knocked down parts, production, exports and imports as well as car accessories and spare parts,” it said.

Proton had in September last year dissolved a dormant unit in Iran, which was a set up in 2011 with the intention to assemble car in the country.

That project, however, never took off the ground following an economic sanction on Iran by the US and Proton’s own financial difficulties,

Prior to this, Proton used to sell its cars in Iran and had a joint venture with a local partner to assemble selected models in the country up until 2010.

A revived Proton today, backed by its Chinese partner Geely, looks set to re-enter the market.

“The incorporation will not have any material effects on the earnings per share, net assets per share, share capital, gearing and substantial shareholders’ shareholdings of DRB-Hicom for March 31, 2019,” DRB-Hicom said.