Proton AMA02 Production to Begin in Q3 2026, Says Supplier – Saga Cross A-Segment SUV to Rival Ativa

Why It Matters

The launch expands Proton’s presence in the fast‑growing sub‑compact SUV segment and demonstrates the company’s commitment to locally produced hybrid technology, strengthening its competitive edge in Southeast Asia’s budget crossover market.

Key Takeaways

• Production of Proton AMA02 begins Q3 2026 per supplier Feytech
• Feytech signs 84‑month, RM96.8bn (~$21bn) leather seat contract
• Saga Cross will rival Ativa, using 1.5L 120 PS engine
• Hybrid DHT120 powertrain borrowed from eMas 7 PHEV, locally assembled
• Expands Proton’s SUV range into A‑segment, targeting budget crossover market

Pulse Analysis

The sub‑compact SUV segment in Malaysia is heating up, driven by urban buyers seeking affordable, fuel‑efficient crossovers. Proton’s decision to introduce the Saga Cross under the AMA02 platform positions it squarely against the Perodua Ativa and Honda WR‑V, both of which have captured significant market share. By timing production for Q3 2026, Proton aims to ride the tailwinds of rising consumer demand while filling a gap in its portfolio that previously stopped at the larger X70 and S70 models.

Technically, the Saga Cross leverages the proven BHE15 1.5‑litre NA engine, delivering 120 PS, and pairs it with an Aisin four‑speed automatic. More importantly, the vehicle adopts the DHT120 hybrid system—a 120‑kW electric motor and single‑speed dedicated hybrid transmission originally used in the eMas 7 PHEV. Sharing these components reduces development costs and accelerates time‑to‑market. Local assembly of the hybrid modules not only cuts import duties but also aligns with Malaysia’s push for domestic EV and hybrid production, enhancing Proton’s credibility as a green‑technology player.

From a business perspective, the RM96.8 billion (≈$21 billion) leather‑seat contract with Feytech signals strong supplier confidence and promises a steady revenue stream for the supply chain. Coupled with a parallel RM37.9 million (≈$8 million) electronics deal, these long‑term agreements provide financial stability as Proton scales up production. The move also supports the government’s automotive localisation agenda, potentially unlocking incentives and boosting export prospects to neighboring markets where demand for low‑cost hybrids is rising. Overall, the Saga Cross could become a cornerstone of Proton’s growth strategy, marrying cost‑effective engineering with market‑ready design.