Shanghai (ZXZC)- On Apr. 1, China’s Zhejiang Geely Holding Group (“Geely Holding”) and Malaysia's DRB-HICOM Group (“DRB”) signed a framework agreement to deepen their cooperation. The duo will cooperate more extensively and deeply around Malaysia's Automobile High-Technology Valley (AHTV) to help develop Malaysia's new energy vehicle industry.

Geely Holding has been actively deepening its presence in the domestic market, and continuously increasing domestic investment and industrial layout, while also expanding into the global market. In May 2017, Geely Holding reached a binding heads of agreement with DRB regarding the future of PROTON Holdings Bhd (“PROTON”) and Lotus Advance Technologies Sdn Bhd (“Lotus”).

Photo credit: Geely Holding

Subject to regulatory approval and the signing of the definitive agreement, this heads of agreement allowed Geely Holding to acquire 49.9% shares in PROTON from DRB and become its exclusive strategic partner. Geely Holding will also acquire a majority share of 51% in Lotus from PROTON.

This agreement laid the foundation for a wider framework for Geely Holding, PROTON, and Lotus to explore joint synergies in areas such as research and development, manufacturing and market presence, said Geely Holding.

Through the joint efforts of the China-Malaysia team, PROTON's annual sales have continued to rise for four consecutive years, from 64,744 units in 2018 to 141,432 units in 2022, representing a growth of 118%, and the company has turned losses into profits. Geely Holding said it will continue to keep its promises and ensure that PROTON becomes Malaysia's No.1 and one of the top three automobile brands in the ASEAN market in the future.

Currently, Geely and PROTON have already launched talent exchanges in the field of the new energy vehicle (NEV). In December 2022, PROTON’s employees went to Hangzhou, China, to participate in a six-month exchange and learning program focusing on R&D, integration, production, sales, and maintenance of the NEV. PROTON's first Mild Hybrid vehicle, the PROTON X90, is about to be launched. In addition, Geely Holding's smart brand has signed an agency agreement with PROTON, and its first all-electric vehicle, the smart #1, will be launched in the Malaysian market in the fourth quarter of 2023.