Proton Holdings plans to ramp up production to 500,000 vehicles a year in the next five years, 20 per cent will be for export markets, as part of its aim to become a global company and reclaim its spot as Malaysia's largest national carmaker.

The export markets they are focusing on Australia, China, Thailand and Indonesia.

Proton is now wholly-owned by conglomerate DRB-HICOM, which took the national car company private six months ago. It had been the country's top vehicle seller since 1985 before it was toppled by Perusahaan Otomobil Kedua seven years ago.

"After 27 years since its establishment, it only exports 20,000 cars a year to 55 countries. The volume does not justify the cost." Mohd Khamil, who is DRB-HICOM group managing director, said.

He added that the Australian market is positive about Proton and has potential for up to 30,000 Proton cars a year. There is also huge potential in Indonesia, which has a population of 280 million people and China, which has a market for 19 million vehicles a year, and if the group can capture one per cent of it, it will translate into 190,000 units.

"Proton has to look outside of Malaysia as the country's automotive market, with a total industry volume of some 608,000 vehicles per year, is already saturated," he said. The carmaker also plans to rationalise its vendors in the next six months too weed out the non-performing ones.