Proton’s Used Car Management Expansion

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July 29, 2020, Subang Jaya – Proton Holdings Bhd, the second largest national carmaker in Malaysia, has started to develop a Used Car Management (UCM) department to streamline the sales and distribution of used cars in support of new car sales.

According to the numbers released by Malaysian Automotive Association, the used car sales grew by 100 percent in the first six months of 2020. 

“The used car business represents a critical component of the automotive value chain and an area which is often not given enough attention,” Proton said in a statement.

Proton’s new UCM division was started in 2019, with a pilot project consisting of eight outlets located in various dealerships. The initial months were used to establish operating procedures and to train used car inspectors who would manage transactions in each outlet. The goal for this year is to have operations established at 36 3S/4S outlets.

“With Proton’s sales growing quickly and expected to increase over the coming years, the role of used car management has become more important as we assist customers who need to dispose of their used vehicles.

“When we started the UCM division in 2019, the goals set were to support new car sales and to improve the resale value of Proton cars,” said its head of used car management Brian Cheah.

The target set for UCM is for replacement sales, where a current owner trades in a Proton model for a new one, to account for a minimum of 10 percent of the volume for outlets with UCM operations.

Proton has also established programmes to help achieve the target such as Proton Xchange, designed to encourage current owners to replace their current cars with the newest Proton model.

The cars sold by UCM will be marketed under the Proton Certified Pre-Owned (PCPO) banner. All PCPO vehicles undergo a comprehensive 201-point inspection and are guaranteed to have never suffered any flood or major accident structural damage. They also get a 1-year extended warranty covering the engine and transmission and are eligible for a one-time free service (engine oil and oil filter only), up to 6 months after their registration date.

“In the future, UCM will set up a dedicated Proton used car portal with an online selling platform to attract techsavvy used car buyers. Potential customers will be able to view our stock remotely and they can also browse the website to get estimated valuations for their current cars,” Cheah said.

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