KUALA LUMPUR - Proton Holdings chairman Mohd Nadzmi Mohd Salleh has been hospitalized after suffering a stroke yesterday while on a trade mission in Chennai, India, reported Bloomberg News.

Nadmi’s condition is currently “stable” and is “recovering well”, according to a statement by Proton. He will be hospitalized until tomorrow.

According to the Bloomberg report, Nadzmi fell ill yesterday shortly after arriving in Chennai to participate in a Malaysia External Trade Development Corp's investment and trade mission.

Proton has been talking to several Indian automakers, including Hero Group, about a possible strategic partnership

Proton, unprofitable in two of the last three years, has been looking to form strategic tie-ups as domestic competition intensifies.

Malaysia will resume issuing carmaking licenses next year in a bid to lure investment as it seeks to recover from its first recession in a decade.

Quickly conclude strategic partnership

Minister of International Trade and Industry Mustapa Mohamed has called on Proton to quickly conclude a strategic partnership with a global carmaker that is willing to make Malaysia a manufacturing hub.

Last week, Malaysian announced that it will deregulate the auto-industry and end import Approved Permits under the new National Automotive Policy. Under the new policy, foreign carmakers would be allowed full ownership of manufacturing operations here.

Malaysia, which has to reduce tariffs on auto and parts imports as part of a deal with Asian neighbours, is scouting for a partner for national carmaker Proton as it faces increasing foreign competition.

Proton held unsuccessful talks with Volkswagen in 2007.

Proton could again try for a tie-up with Volkswagen or seek out General Motors or Peugeot as a potential partner.