(Yicai Global) Aug. 20 -- Proton new energy vehicles made by Malaysian car manufacturer Proton Holdings will probably enter the Chinese market soon.

Geely Holding Group andShah Alam-basedProton signed a cooperation framework agreement at Geely's headquarters in Hangzhou on Aug. 18in the presence of Malaysia's PrimeDr.Minister Mahathirbin Mohamad, who is in the country on a state visit. Both sides stressed they willbroaden their cooperation in new energy vehicles.

Geely andProtonparentDRB-HICOM Group will set up a joint venture in China with a 50 percent stakeeach, perthe agreement. Proton will then enter the Chinese market and comprehensively cooperate with its partnerinelectrification.Investment amounts,plant locations and other detailsstillawaitfurther negotiations, however,the parties toldYicai Global.

"Geely promises a bright future for Proton cars," Li Shufu,Chairman of Geely Holding stressed at the signing.

Founded in 1983 by Mohamadwhen he served asfirst-term primeminister, Proton was a state-owned car company with high recognition and market share in the Southeast Asian market. Geely acquired a 49.9 percent stake initand a 51 percent stake in luxury sports car brand Lotus from Malaysia's DRB-HICOMlast year.

Proton has been selling cars in 65 countries on five continents,but not yet inChina.The car marquehas been trying to enter the Chinese market,MohamadtoldYicai Global at the signing ceremony.

The Malaysian government will actively promote the cooperation between Geely and Proton,Mohamadindicatedwhilevisiting Geely Automobile Holdings.

Geely did not even exist when Proton began to manufacture cars. However, in terms of quality, production efficiency and system capacity, it has caught up from behind, Mohamad said,andthe cost of China-madecarswill be lower and their quality will be better than those produced in Malaysia talking, he added, addressingthe future prospectsofcooperation between the two sides.

Editor: Ben Armour