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Production at Proton’s Tanjung Malim plant has dropped by over 50% on chip supply shortage

Hans · Jun 26, 2021 03:24 PM

Production at Proton’s Tanjung Malim plant has dropped by over 50% on chip supply shortage 01

Manufacturing output at Proton’s main plant in Tanjung Malim, which makes the Proton Iriz, Persona, X50, and X70 – have dropped by more than 50 percent in May 2021.

Production at Proton’s Tanjung Malim plant has dropped by over 50% on chip supply shortage 02

According to industry data obtained by WapCar.my, total production at the Tanjung Malim plant came up to just 4,115 units in May 2021, down 52 percent from April 2021’s 8,534 units, the highest figure recorded in recent years, mostly due to the high number of backlogged orders for the hugely popular Proton X50.

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Production at Proton’s Tanjung Malim plant has dropped by over 50% on chip supply shortage 01

However just as Proton was ramping up on its output, it was once again hit by a double whammy of chip supply shortage and complications in supply chain due to the tighter MCO.

Production at Tg Malim plant, 2021
Model (units) Mar Apr May
Iriz 718 772 229
Persona 1599 2168 633
X50 3393 3262 1821
X70 2395 2332 1432
Total 8105 8534 4115

Proton is due to launch the facelifted Proton Iriz and Persona, as well as a new Proton X70 SE variant later this year, but it’s quite certain that the launch will have to be pushed back.

Also readThe cars Malaysians are expecting in the second half of 2021 – Iriz Active, City Hatchback and more!

Production at Proton’s Tanjung Malim plant has dropped by over 50% on chip supply shortage 02

“We are also finalizing our model launch plans for the rest of this year. The current MCO will push some of these dates back, but Proton remains committed to meeting our launch targets and creating some excitement for our customers in 2021,” added Roslan Abdullah, CEO of Proton Edar earlier this month.

Also readLeaked: First clear look at 2021 Proton X70 SE with new Ocean Blue colour

Production at Proton’s Tanjung Malim plant has dropped by over 50% on chip supply shortage 03

Since June, Proton has temporarily stopped production at its Tanjung Malim and Shah Alam plant. The latter makes the Proton Saga and Proton Exora.

MCO aside, the chip supply shortage is not expected to ease until 2022. The shortage is due to spike in orders for electronic devices as more people are working from home and are staying longer indoors (which drives demand for home entertainment up).

Production at Proton’s Tanjung Malim plant has dropped by over 50% on chip supply shortage 04

At the same time, many manufacturers had reduced their orders for electronic parts last year in response to the global pandemic, but had not expected that they would have to compete with PC and gaming console devices manufacturers once economic activities resumed.  

Proton is not the only local manufacturer facing chip supply shortage. Perodua too saw reduction in output of its Rawang plant, but in a smaller percentage.

Production at Proton’s Tanjung Malim plant has dropped by over 50% on chip supply shortage 05

Perodua produced 18,283 units in May, down 10 percent from the 20,278 units produced in April.

Globally, the Toyota Motor group, including Daihatsu, which owns Perodua’s manufacturing division, is less impacted by the global supply shortage. The reason behind this has been outlined in this article.

Hans

Head of Content

Over 15 years of experience in automotive, from product planning, to market research, to print and digital media. Garages a 6-cylinder manual RWD but buses to work.

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