Proton Saga Goes Down Under As S16

Proton Australia will be launching Proton Saga, known affectionately as The People’s Car to Malaysians at least, on November 1st later this year. It will not be called Saga, and is instead named S16. The 1.6-litre with IAFM engine will be made available along with a five-speed manual gearbox. Prices will start at under AUD 13,000 (RM 39,268). S16's competitive advantage would be that it is Australia's lowest priced sedan, as Proton claims. The offering of the 1.3-litre engine come 2010 would lower prices still, strengthening Proton's case.

What really caught our attention was Proton's sales pitch. Saying S16 is the lowest priced four-door sedan is true, honest and easy to verify. Customers will know what kind of a deal to expect at the end of the day. Saying Proton Waja is “Asia's answer to BMW,” when the sedan was first sold in Australia, is not only untrue, it sets expectations unrealistically high, which eventually leads to disappointment, and a Proton bad name further down the roads; Bad news always spread fast. A recent Proton advertisement in Singapore called Proton Exora “amazing”—which sets the stage for disappointment. Don't get us wrong: Exora is a good-value MPV, but “amazing” it is not, and customers should not be misled.

You know how successful an automaker is from the number of foreign markets it is exporting to. By that measure, Proton is doing fine, currently exporting to 10 other Asian countries, nine in the Middle East, three in Africa, three in Europe including U.K., and only Australia in the Pacific. Understandably, Proton has avoided exporting to more developed markets most likely due to the glut of choices available there. To really succeed overseas, other than the obvious need to improve quality, is the need for accurate, less boastful marketing—advertisements that tell it like it is—focusing on the value Protons bring for the money.