5 Shocking Numbers That Explain Why Proton Is Exiting Its Distribution Deal In South Africa

Proton’s second stint in South Africa is hitting a major turning point. After returning to the market in 2022, the brand’s official distributor, CMH Group, has confirmed in its 2026 annual report that their partnership will soon officially "terminate." 

While the cars earned high marks for build quality and reliability, the math of uncompetitive import pricing proved impossible to ignore. From plunging sales to a shrinking showroom footprint, here are five numbers that explain why Proton’s current distribution model is coming to an end.

1. Seven (7) — The April 2026 Sales Floor

This is the number that stopped everyone in their tracks. In April 2026, Proton registered only 7 units across the entire country. For a brand that once saw South Africa as its "second-biggest export market," selling units you can count on two hands is a clear sign that the current distribution model has stalled.

2. 87.5% — The Year-on-Year "Freefall"

The start of 2026 was a wake-up call. Proton suffered a staggering 87.5% decline in sales in Q1 2026 compared to the same period in 2025. Registrations plummeted from 160 units to a mere 20 units for the quarter. In an industry where momentum is everything, this drop-off made the "termination" of the CMH deal almost inevitable.

3. 50% — The Shrinking Dealership Network

When Proton relaunched in 2022, the goal was 25 dealerships within six months. They started strong with 20, but by May 2025, that number had dipped to 17. Today, the official website lists only 10 remaining dealerships. Losing half your retail footprint in less than four years is a tell-tale sign of a brand preparing for a major transition.

Read: Proton re-enters South Africa with X50 and X70 crossover SUVs

4. Zero (0) — The "Price Gap"

CMH Group CEO Jebb McIntosh was brutally honest in the report: the import pricing is uncompetitive. While the Saga and X-series SUVs were loved for their low warranty claims, the high cost of CBU (completely built-up) units from Malaysia, exacerbated by exchange rates, meant Proton couldn't go toe-to-toe with aggressive Chinese rivals like Chery and GWM.

5. Two (2) — The Geely "Takeover"

This is the most strategic number of all. While Proton steps back, Geely is stepping up. Geely returned to SA in late 2025 and has already launched two major EVs: the E5 (our e.MAS 7) and the E2 (the e.MAS 5). With Geely Auto South Africa currently in "ongoing discussions" to potentially take over Proton’s distribution, it looks like the Tiger might soon be trading its stripes for a Geely badge.

Is This a Goodbye or a Reboot?

The confirmation of CMH’s termination marks a significant shift for Proton in South Africa, but according to the distributor, it isn't a total exit. In the 2026 integrated annual report, CMH CEO Jebb McIntosh stated that the group would continue providing workshop and parts support "until the local Geely operations are ready to take over."  

While Geely Auto South Africa has noted that "discussions are currently ongoing" with no formal decisions finalized yet, the prospect of an alignment with Geely’s existing local infrastructure could provide a more integrated path forward. For Malaysian fans, it’s a moment of transition, proving that while the cars have the quality to survive African roads, navigating global import pricing remains the ultimate challenge.

Do you think Proton should keep its independent identity overseas, or is it smarter to let Geely handle the heavy lifting? Spill your thoughts in the comments! 

Source: Cars.co.za