The genesis o the Tiara wis the result o an agreement durin the mid-1990s atween Proton's then CEO, Tan Sri Yahaya Ahmad, an PSA Peugeot Citroën, a producer o Citroën an Peugeot vehicles. Yahaya haed expressed wishes that Proton no uise Mitsubishi platforms, an that Proton cooperate wi PSA Peugeot Citroën for access tae its diesel ingines.
Yahaya Ahmad wis killed in a helicopter crash in 1997, an Proton returned tae uisin various Mitsubishi-based platforms an developed in-hoose designed models later. Production o the Tiara ceased in 2000 due tae low sales volume; in 2005, the Proton Savvy wis launched as a successor tae the Proton Tiara.
Design an market 
The Tiara wis kent as the cheapest uised caur in its market. Its appearance mimicked that o mair pouerful Citroën AXs, such as the AX GT, but the grille wis restyled tae match the existin Saga an Wira models. Ither cosmetic differences includit different bumpers an taillicht clusters. It wis ae available wi a 1.1-litre 45 kW (60 hp) ingine.
The Proton Tiara wis sauld ae in the Malaysian market, due tae similarities wi the Citroën AX.