KUALA LUMPUR – Proton Holdings Bhd is considering to increase the prices of its cars starting from January 2016 due to the weakening ringgit.
In a statement today, the national carmaker said the price increases were seen as an industry situation as they would need to be raised to compensate for the effect of the lower ringgit.
Chief Executive Officer, Datuk Abdul Harith Abdullah, said many of the companyâ€™s raw materials were purchased in foreign currency.
“The weaker ringgit affects the companyâ€™s operation costs and the entire eco-system chain from the vendors to us,” he said.
Abdul Harith said Proton was evaluating its price structure and the percentage of the price increase will depend on the models.
Proton said to cushion the impact which has been affecting the companyâ€™s bottom line since August 2015, it has put more efforts in reducing operational costs and rationalising operations where necessary.
“The weakening ringgit continues to put pressure on Proton despite these efforts and is affecting the industry as a whole,” it said. – BERNAMA