KHPT Secures RM155 Million Proton Contract to Supply Components for New Vehicle Model
PETALING JAYA: KHPT Holdings Bhd (KHPT) has strengthened its position in Malaysia’s automotive industry after securing a contract from national carmaker Proton to supply automotive components for a new vehicle model.
The contract, awarded to KHPT’s wholly owned subsidiary Automev Global Sdn Bhd, is expected to generate approximately RM155 million in revenue over the duration of the agreement and further reinforce the company’s role in the domestic automotive supply chain.
In a filing with Bursa Malaysia, KHPT said Automev Global had accepted a Letter of Acceptance (LOA) from Proton on May 6, 2026, relating to the supply arrangement.
The company said the LOA would remain valid throughout the lifespan of the vehicle model, unless extended or terminated earlier in accordance with the terms and conditions stipulated in the agreement.
“The LOA is expected to generate approximately RM155 million in revenue for Automev Global over the LOA period.
“It shall remain valid throughout the vehicle model’s life cycle, unless extended or terminated earlier based on the agreed terms and conditions,” the company said.
Under the agreement, Automev Global will manufacture and supply selected automotive structural components to support Proton’s production requirements for the new model.
Structural components are among the most important parts of a vehicle as they contribute to the strength, safety and overall durability of the car body.
KHPT said production of the components will be carried out at its existing manufacturing facility in Telok Panglima Garang, Selangor.
The plant has long been involved in producing automotive components for both domestic and international vehicle manufacturers operating in Malaysia.
The company believes the new contract will help improve plant utilisation rates and contribute positively to the group’s earnings over the long term.
According to KHPT, the award reflects Proton’s continued confidence in the group’s manufacturing capabilities and technical expertise.
“This LOA reflects the group’s continued participation in the domestic automotive supply chain and reinforces its long-standing business relationship with Proton,” it said.
Industry observers view the contract as a positive development for KHPT, especially as Malaysia’s automotive sector continues to evolve with the introduction of new models and increasing adoption of advanced manufacturing technologies.
Local component makers with expertise in structural parts and engineering solutions are expected to benefit from the industry’s expansion in the coming years.
The agreement is also expected to create spillover effects for the wider automotive ecosystem, potentially generating additional economic activities and employment opportunities as production ramps up.
In a separate clarification, KHPT noted that Automev Global had originally accepted the LOA on May 6.
However, the company only announced the development to Bursa Malaysia after obtaining Proton’s consent on June 16 to disclose the contract details publicly.
The move was in line with Bursa Malaysia’s disclosure requirements and corporate governance practices governing listed companies.
Market analysts believe the contract not only strengthens KHPT’s earnings outlook but also enhances its reputation as one of Malaysia’s established automotive component manufacturers capable of meeting the requirements of major vehicle producers.
With a sizeable contract value and an agreement tied to the lifespan of Proton’s upcoming model, KHPT is expected to be in a stronger position to sustain growth and expand its presence in the increasingly competitive automotive industry.
