Oh boy. This is not going to go down well.
According to Bernama, Malaysian automobile manufacturer Proton Holdings Bhd is considering raising the prices of its cars beginning from January 2016 onwards. The company’s decision to increase the car prices is due to the weakening Malaysian ringgit.
Proton chief executive officer Datuk Abdul Harith Abdullah said in a statement that most of the company’s raw materials were purchased in foreign currency.
He said:
The weaker ringgit affects the company’s operation costs 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,” he added.
According to Proton, the weakening ringgit has been affecting their profit since August. Thus, the company mentioned that it has been putting more efforts to rationalise operations and reduce operational cost. “The weakening ringgit continues to put pressure on Proton despite these efforts and is affecting the industry as a whole,” the company added.
So, do you think that Proton should increase the car prices? Will you still purchase Proton cars? Share your thoughts in the comment box below.
Sources: BERNAMA, Free Malaysia Today.
