Following Proton's decision to discontinue the Citroën AX-based Tiara in 2000, a replacement model was required in order for Proton to reenter the supermini market. The replacement, originally codenamed the Tiara Replacement Model (TRM), was partially designed in-house by Proton but is powered by a D-Type engine by Renault.
The Savvy was launched June 2005 in Malaysia as a manual transmission-only model, followed by the introduction of Automated Manual Transmission (AMT) model in November 2005. Export models of the Savvy were introduced to the United Kingdom in September 2005. The Savvy was also among two models (alongside the
Proton Gen-2) the now defunct MG Rover was seeking to rebadge when it entered talks with Proton's parent company in 2005. On January 19, 2007, a photoshopped facelift was released, sporting minor changes on the front and rear.
In 2006, Proton introduced a "Savvy Zerokit" variant developed in conjunction with the Proton's motorsports division, R3 (Race Rally Research), that includes an all-round bodykit and rear spoiler made from
fibre-reinforced plastic, and 15-inch (380 mm) JRD 155 wheels. Additional options include "dark titanium" headlights, performance suspension and a performance rear exhaust muffler that increases the power output of up by 4 hp (3 kW) to 78 hp (58 kW).
The Savvy is also notable for being the first Proton car to undergo the first ever publicly-announced recall. On April 1, 2008, Proton Edar ordered the recall of all 34,000 Savvys on Malaysian roads (of which their production dates are before December 17, 2007) for an inspection and (possible) replacement of the rear wheel
bearing, based on part defect found during random checks. The announcement was a precautionary measure over possibilities potential water entry into the Savvy's rear wheel bearing set might causes malfunction to its components.
The second generation Proton Saga, launched in January 2008, based its chassis on that of the Savvy, albeit elongated to support a
saloon bodywork.
Unlike the Tiara, the Savvy's exterior design was largely developed in house by Proton, prominently featuring a clamshell bonnet design for efficient air scooping.The Savvy is powered by a 1.2 L D-Type SOHC 16-valve engine sourced from Renault, similar to the one used in the Renault Twingo and Clio.
The reverse gear for the manual transmission model is placed at the top left which is the position of normal first gear position for conventional manual transmission cars. A locking mechanism is equipped to prevent the driver from accidentally shifting to reverse when shifting to the first gear, which can be unlocked by pulling up the black ring at the gear knob while shifting to reverse. This is a similar mechanism in many European cars, including Volvo and Renault cars from the mid-1990s.
The Savvy, along with other in-house designed Protons such as the Gen-2, Persona, Satria Neo,
Waja, Waja Chancellor, and second-generation Saga, feature signal switches placed at the left-hand side, unlike models introduced earlier, such as the first-generation Saga, Wira and Perdana.
The first model comes with the front and rear looking similar in a sense that both sides have a "V" design for the logo, whereas the facelift or current models come with straight horizontal grille in the front and two horizontal lines behind.
In Malaysia, there is a basic model called Savvy Lite, of which this model has most of the manually controlled mechanical parts and comes without "expensive" features such as the remote control, power windows and alarm system.
As of 2010, the production of Savvy Highline has been discontinued resulting a huge dissatisfaction among Malaysian fan.
The Savvy has received two known "Car of the Year" awards from two ASEAN countries, including the Cars, Bikes & Trucks's "New Straits Times/AmBank Group 2006 Car of the Year" Award in the Supermini category, and the "Best City Car" award at the 6th Indonesian Car of the Year 2007 awards. The car is also the only Proton model so far to be TÜV (Technischer Überwachungsverein) Certified.
Proton Savvy also has been voted among Thailand's top 10 cars in 2008 by The Nationdaily's car writers. The Savvy, priced at 469,000 baht (RM44,000), was selected along with some of the most impressive and expensive cars in the Thai market, among them the Jaguar XF, BMW 320D, Volvo S80 3.2, Mini Copper S Clubman, Honda City, Honda Jazz, Ford Focus 2.0 TDCI, Mitsubishi Pajero Sport and Subaru Impreza STI."Cheap price, good acceleration and almost go-kart-like handling (thanks to Lotus) made us fall in love with this little Malaysian thing," the daily said of the car, which is distributed by Phranakorn Auto Sales.
The Savvy is also recognised in the Malaysian Book of Records as the most fuel-efficient car in Malaysia during an on-road test by Proton with an average fuel consumption of about 24 km/L.
