Malaysian auto-maker Proton to launch a compact-car in India

Malaysia based leading car maker Proton announced on Tuesday that it was in talks with an Indian car maker for the production of Proton cars in India so that the company can mark its entry in one of the world's fastest growing auto market. The company further said that it will enter into a partnership with UK's sports car maker Lotus for manufacturing compact hatchbacks for markets like Asia and the Middle East.

Mr Syed Zainal Abidin Syed Mohamad Tahir, Proton's managing director said while briefing to the reporters that the company was in talks with one auto-maker, however, he refused to mention the name. He hopes that company can produce the car in less than two years and it will be hybrid and combustion models.

Mr Syed Zainal further elaborated that the company will collaborate with Lotus to manufacture a new small car, powered with a 1.0- to 1.5-litre engine. He also denied the media reports about its possible tie-up with India's leading utility vehicle maker Mahindra Mahindra, and added that there was a discussion between both the companies several years back.

Besides this new small car, the company has another compact car 'Savvy' in its global portfolio. The Savvy model will be powered with a 1200cc engine which will be out-sourced from Renault. It is speculated that the company may look for possibilities of sourcing engines from Renault for its India bound compact car too, as Renault has invested heavily at its engine production facility in Chennai. However, there is no confirmation form either of the company on this front.