The company told Dealerfloor that the CEO of its South African operation – Marius Small – will shortly issue a statement addressing the local future of the Malaysian brand. This follows widespread media speculation that Proton, which is partly owned by Chinese automotive giant Geely, may be pulling out of South Africa for a second time.

However, insiders within the Proton operation who spoke to Dealerfloor insist that the brand is not going anywhere and is here to stay.

Proton first entered the South African market in 2004 with models such as the Gen 2, Savvy, and the Arena small bakkie. It continued operating for around a decade, with the final new models sold in 2015.

The brand made a comeback in 2022 when Combined Motor Holdings (CMH) announced it would relaunch Proton, utilising its dealer network as the base for distribution. It also awarded franchises to other dealers and dealer groups, including iPop and the BB Group. The latter recently announced that it has relinquished all its Proton franchises.

CMH, which operates more than 130 dealerships representing 36 brands, is one of the largest companies in the automotive retail sector in South Africa. Its subsidiaries have interests in retail motor, car hire, financial services, consumables distribution, digital marketing, and workshop equipment.

In CMH’s Integrated Annual Report for 2025, Chief Operating Officer Jebb McIntosh states that Proton’s import and distribution operations remain challenging and costly. The current inventory will be sold during the first half of the coming year, after which the Group and the Malaysian manufacturer will decide on the way forward.

In the report, the CMH CEO also refers to other brands, noting that luxury vehicle sales have been the hardest hit in recent years, declining steadily for nearly a decade. Sales dropped by 10% between 2022 and 2023, followed by a further 8% decline in 2024. At the opposite end of the market, taxi sales have also seen a sharp downturn.

The withdrawal of SA Taxi Finance—following allegations of fraud among operators and increasing bad debts—has led major motor finance houses to cut funding, reducing sales by up to 80%.

Within CMH, several dealerships have undergone costly restructuring and repositioning to adapt to changes in brands and product lines. Ford has shifted its focus more towards the light commercial market and, although it has shown growth in various segments, now operates with a more limited scope.

Nissan is no longer producing its previously popular and affordable half-tonne and one-tonne pickups. Some of its key models, previously sourced from Japan, have been discontinued due to unaffordability in the local market.

Volvo’s stated intention to focus on electric and hybrid vehicles has significantly impacted its appeal in South Africa. The dealer network has been reduced from 25 to just seven dealerships, which will operate only in major metropolitan areas. CMH will manage four of these remaining dealerships and expects to benefit from an increased share of the workshop and parts sales business.

The introduction of the Foton light commercial range has exceeded expectations, according to the report. The launch has been strongly supported by the Chinese manufacturer, and the product appeared in the February local top 10 sales list for commercial brands. Sales are expected to receive an additional boost in June, when a new cabover model will be launched at a highly competitive price.

A network of 55 local dealers has been established, 14 of which are owned and operated by CMH. An additional five dealers will be added this year. Foton is expected to be a significant contributor to profits in the year ahead.