PETALING JAYA: DRB-Hicom Bhd’s unit Proton Edar Sdn Bhd is forming a joint venture (JV) company with Altel Communications Sdn Bhd and Ecarx (Hubei) Technology Co Ltd.
In a filing with Bursa Malaysia, DRB-Hicom said the JV company will provide research and development, sales and services of vehicle connectivity, digital cockpit, safety, autonomous vehicle and IoT technology related products.
According to DRB-Hicom, the proposed JV would benefit the Proton Holdings Bhd group in gaining the technological know-how in high digital technology product and services in relation to the automotive industry.
“It also creates opportunity for the Proton Holdings group to establish a car connectivity research and development centre in Malaysia for future products enhancement to suit local and regional ecosystem, and also for export countries with better and higher standard of services,” it said.
Proton Edar is a wholly owned subsidiary of Proton Marketing Sdn Bhd, which in turn is a wholly-owned subsidiary of Proton Holdings. Proton Holdings is a 50.1%-owned subsidiary of DRB-Hicom.
Under the JV agreement, Proton Edar will hold a majority stake of 60% while Altel and Ecarx will hold 30% and 10% respectively, with a total capital contribution of RM6 million from the three parties.
Proton Edar has proposed to fund its capital contribution of RM3.6 million in the JV company from its internally generated funds.
Incorporated in Hubei, China, Ecarx is involved in intelligent automobile and network connection, digital cockpit electronic products, active safety electronic products, unmanned sensors and controllers, as well as the operation services of Internet of vehicles cloud platform and big data platform.
Meanwhile, Altel’s principal activities include providing network facilities, network services and application services mainly in the provision of public cellular and mobile internet service.