Proton’s local distributor looks set to off-load the struggling Malaysian brand. While Geely confirms it’s in “discussions” to take over distribution in SA, it says “no formal decisions” have yet been made…
- CMH confirms Proton distribution agreement will “terminate”
- Geely in talks to take over but says no decision has been made
- Proton sales in SA slumped 87.5% year-on-year in Q1 2026
With Proton sales in South Africa flagging, the Combined Motor Holdings (CMH) Group has confirmed its distribution agreement with the Malaysian brand with soon “terminate”. Chinese firm Geely – which owns a 49.9% stake in Proton globally – says it’s in discussions to take over local distribution, though emphasises “no formal decisions” have yet been made.
As a reminder, Proton returned to South Africa in September 2022, after the CMH Group was appointed as the brand’s local distributor. In May 2025, we reported that the marque’s future in Mzansi looked uncertain, based on comments from CMH Group CEO Jebb McIntosh. Soon thereafter, Proton SA released a statement saying it was “not exiting the South African market”.
Now, a year later – with local Proton sales having tapered to a fresh low – McIntosh confirmed in the CMH Group’s recently released 2026 integrated annual report (for the year ended 28 February 2026) that the “Proton import/distribution operation will terminate when the remaining inventory is sold”.
“The products have proven to be of good quality, with low warranty-claim rates, but the import pricing is uncompetitive. The [CMH] Group will continue to support [Proton] customers with workshop and parts facilities through its retail outlets until the local Geely operations are ready to take over,” McIntosh wrote in the report.
Since McIntosh made specific mention of the Chinese brand, we asked Geely Auto South Africa – which is a wholly owned subsidiary of the Zhejiang-based automotive giant – whether it did indeed have plans to take over local distribution for Proton. For context, Geely returned to SA late in 2025, relaunching its local operations with the E5 range, before adding the fully electric E2 in April 2026.
“We are aware of the market speculation regarding Proton’s future distribution arrangements in South Africa. Discussions are currently ongoing, however no formal decisions or announcements have been concluded at this stage. As such, it would be premature for us to comment further at this time,” Geely Auto SA told Cars.co.za, adding that any “confirmed information” would be “communicated through the appropriate formal channels”.
Ahead of its return to the local market in 2022, Proton’s global division said it was “bullish about its sales prospects in South Africa”, adding that it was “projecting strong sales” in the final months of 2022, before setting itself a target of more than doubling its volume in 2023.
The automaker started reporting sales figures to industry-representative body Naamsa in July 2023, with 640 units registered in the 2nd half of that year. In 2024, Proton sold 888 units in Mzansi (translating to a monthly average of 74 units), a total that fell to just 459 units in 2025 (or around 38 units a month).
In Q1 2026, Proton SA suffered the local market’s most significant year-on-year percentage drop in sales, with registrations plummeting 87.5% compared to the same 3-month reporting period in 2025, falling from 160 units to a mere 20 units. A further 7 units were registered in April 2026.
Proton’s range in South Africa currently comprises the Saga sedan along with the X50, X70 and X90 crossovers. Pricing starts at R209 900 for the base version of the Saga and runs through to R679 900 for the top-spec derivative in the X90 line-up. According to its website, Proton currently has 10 dealerships in SA – down from the 17 that were listed a year ago (in May 2025) and the 20 that marked the brand’s relaunch in 2022.
Frequently Asked Questions (FAQ)
Q: Is Proton leaving the South African market?
A: While the current distributor, Combined Motor Holdings (CMH) Group, has confirmed it will terminate its distribution agreement once remaining inventory is sold, the brand might not actually exit. Geely Auto South Africa is currently in discussions to potentially take over local distribution, though no formal decision has been finalised.
Q: How poor were Proton’s sales figures in early 2026?
A: Proton suffered a massive 87.5% year-on-year sales decline in Q1 2026, with registrations dropping from 160 units in the first three months of 2025 to just 20 units in the same period of 2026. Only 7 additional units were registered in April 2026.
Q: Will current Proton owners still have access to parts and services?
A: CMH Group CEO Jebb McIntosh has confirmed that the group will continue to support existing customers with workshop and parts facilities through its retail outlets, seemingly until local Geely operations are prepared to take over the responsibility.
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