Due to the weakening Ringgit, Proton is considering increasing the prices of its cars, starting January 2016.
“We do feel the impact of the fallen Ringgit as many raw materials are purchased in foreign currency. The weaker Ringgit affects the company’s operation cost and the entire eco-system chain from the vendors to us. Hence, we are evaluating our price structure and the percentage of the price increase will depend on the models,” said Dato’ Abdul Harith Abdullah, Chief Executive Officer of Proton.
The price increase is seen as an industry situation as prices would need to be raised to compensate for the effect of the lower Ringgit.
To cushion the impact which has been affecting the company’s bottom line since August 2015, Proton has put more efforts in reducing operational costs and rationalising operations where necessary. Despite these efforts, the weakening ringgit continues to put pressure on the local automaker and is affecting the industry as a whole.
Besides Proton, several other carmakers have announced plans to increase its pricing structure next year due to the weakening Ringgit. This includes Honda Malaysia, Nissan (ETCM), UMW Toyota Motor and Mitsubishi Motors Malaysia.
