Professional Documents
Culture Documents
29 September 2016
Background of Edaran Otomobil Nasional Sdn. Bhd. (EON-A)
The Proton Saga was a special project of the Malaysian Prime Minister
to further industrialization of the country and economic development.
The objectives of the Malaysian national car project were as below:
1- To rationalize the local automotive industry;
2- To spearhead the development of local component industries and to
enhance greater utilization of local components;
3- To encourage upgrading of technology emphasizing technical and
engineering knowledge and skills of the country;
4- To assist and develop the Bumiputras participation in the automotive
industry.
Industry Structure
The Passenger car business gave the consumer a wide variety of
choice, in terms of engine capacity, make, and equipment level in 1985, the
bulk of market was within the <1600 cc segment which approximated 80%
of total market shares as may be seen as below:
<
1000 cc 8.4%
1001
1600 cc 70.0%
1601
1800 cc 12.6%
1801
2000 cc 3.7%
>
2000 cc 5.3%
In this segment, the market leaders were Nissan and Toyota. Nissan
and Toyota assembled parts of their vehicles in Malaysia. Their main
advantage was their flexibility in car models based on the latest trends in
Fuel Economy
Exterior Styling
Riding comfort
Ease of handling
Roominess for driver
Interior styling
Engine power
Engine Performance
Durability
Trade-in
Price
Reputation
Support
Delivery
Status symbol
Confidence in Brand
Terms
Location of Branch
Male
Aged 21 to 40
Personal Income of M$ 1001-2999/month
Malaysians
Various sections of the community
Early on, EON management decided that their goal was to be the
market leader in the passenger car market through the supply of an
affordable and good quality car. EON decided on a rapid penetration/high
growth strategy.
The responsibility given to EON as the sole distributor of the Malaysian
car required the company to set up a large organization in very short span of
time. EON started out by being housed under United Motor Works premises
but once management decided that operations were ready, plans for a
headquarters were finalized.
As early as December 1984, announcements were made that the
Proton Saga was open for bookings. In July 1985, 1001 Special Proton
Number Plates were made available to the public to commemorate the
forthcoming launch and the first thousand and one cars that would grace the
Malaysian roads. EON made good use of multimedia advertising TV, print
and radio.
August 7, 1985 was the first day of the West-East Malaysian tour called
the Sagarama. For 13 days, two Proton Saga 1.3s Saloon cars were driven
throughout the country stopping in cities and towns. Each stop was made
amidst warm welcomes and fanfare. At each stop, a local official or member
of the Malaysian Royalty would welcome the Saga by placing a sticker on the
car to signify that the Saga had passed his town. The Sagamara was well
received by the Malaysian people, giving it the air of a major festival.