The Satria Neo was introduced in June 2006 as a replacement for the first generation Satria. Based on a new platform developed in-house by Proton (with some parts borrowed from the bigger Gen-2 and Waja), the car is currently only available in a three-door hatchback guise. The car was developed at a cost of RM500 million and four years, and was expected by Proton to generate a monthly sales volume of 2,000 to 2,500 units. The car was also intended to target those who are "youthful and sporty". The Satria Neo was launched by Malaysian Prime Minister Abdullah Ahmad Badawi.
The entry-level Satria Neo, the 1.3 L-line, is powered by a 1.3-litre, inline-4 twin-cam Campro engine, producing 94 bhp (70 kW). The 1.6 M-line and top-of-the-range H-line models have 1.6-litre versions of the same engine, with an output of 110 hp (82 kW). All cars have the option of either 5-speed manual or 4-speed automatic gearboxes supplied by Mitsubishi that are carried over from the previous Satria, with the H-line benefitting from safety features such as twin airbags, ABS with EBD and seatbelt pre-tensioners.
