The genesis of the Tiara was the result of an agreement during the mid 1990s, between Proton's then CEO, Yahaya Ahmad, and PSA Peugeot Citroën, a producer of Citroën and Peugeot vehicles.

[3] Yahaya Ahmad was killed in a helicopter crash in 1997, and Proton returned to using recycled Mitsubishi based platforms and parts and developed in-house designed models later.

Production of the Tiara ceased in 2000, due to low sales volume; in June 2005, the Proton Savvy was launched, as an indirect successor to the Proton Tiara or Citroën AX.

It was only available with a 1.1 litre 45 kW (60 hp) engine, paired with a five speed manual.

The Tiara sold in two variants, the material coloured bumper 1.1 GL and full body paint 1.1 GLi, and came with six colour options; silver, red, royal blue, dark green, greenish blue and grey.