Proton Drives Beyond Automobiles To Diversify Its Revenue Stream

As PROTON continues its business expansion in the automobiles market, it is also strategically diversifying its operations and revenue streams by venturing into various sectors within and beyond the automotive ecosystem. Spearheading this effort is Proton Global Services (PGS), a wholly owned subsidiary of Proton Edar, which is establishing itself as a key component of PROTON’s business network.

Established in 2021 with a single F&B and merchandise outlet, PGS has since broadened its scope of operations to cover 6 key areas i.e. Lifestyle, Engineering, Training, New Energy, Logistics, and R3 Motorsports. Led by PGS CEO, Lee Yeet Chuan, revenue has increased exponentially from below RM1 million in 2021 to 19 times that figure by the end of 2023.

For Proton owners and enthusiasts, the most prominent areas of PGS’s business are its Lifestyle and R3 Motorsports divisions. The Lifestyle division manages the Proton Café and the sale of Proton merchandise, while the R3 Motorsports division is dedicated to developing performance variants and running Proton’s racing activities.

Since its start in 2021, the Proton Café has been serving customers with premium brewed coffee and food in a relaxing setting. There are currently 16 outlets operating at various Proton dealerships, and there are plans to expand this network to 25 outlets by 2025. Additionally, Proton branded merchandise, including R3 merchandise, now commercialised under PGS, are currently available through 20 merchandise partners nationwide, along with an online presence at protonmerchandise.com.

Last year, the iconic R3 Motorsports division marked its 20th anniversary by launching the Proton X50 R3 20th Anniversary Edition. This year, the division is focused on developing a Proton S70 R3 racing car for participation in the S1K race, along with growing its sales of high-performance R3 lubricants.

Lee Yeet Chuan, CEO of PGS, remarked, “The retail business for PGS leverages on the strong enthusiasm Malaysians have for Proton. With so much history behind the company, we have an opportunity to build closer ties with Proton owners while offering them premium products and services. Our activities also indirectly reinforce Proton’s branding, and this is clearly seen via our R3 branded merchandise, lubricants and return to motorsports in the future.”

In addition to its retail opportunities, PGS is engaged in projects within PROTON’s ecosystem, generating additional revenue streams for the parent company through profit-sharing with Proton Edar. Its projects include the upgrading of lighting systems at PROTON’s casting plant to improve energy efficiency, and supplying furniture and commissioning new office space for departmental transfers to Proton Tanjong Malim.

Meanwhile, the New Energy division of PGS is focused on integrating renewable energy solutions to improve the company’s Environmental, Social, and Governance (ESG) rating, while also retailing energy-efficient solutions. Projects include the supply and installation of solar PV cells for Proton dealerships and vendors, as well as collaborating with partners to develop a proof of concept for mobile EV charging.

Roslan Abdullah, CEO of PROTON Edar, highlighted, “PROTON has been able to derive a number of benefits by forming Proton Global Services. From a costing point of view, the company is now able to better control operational costs while PGS retail operations allows us to leverage on the strength of our dealer network and brand image and maximise revenue opportunities from sales of merchandise, F&B and high-performance lubricants.”

“For the future, plans are in place to expand the use of renewable clean energy for PROTON and our vendors while work is currently ongoing between PGS and its engineering partners to develop energy storage and charging solutions critical for future Proton models. Added to initiatives to support training for automotive industry workers as well as a growing logistics presence, we envision PGS to continue to make consistent contributions to PROTON’s bottom line in the future,” he added.