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Proton mulls price increase in 2016

KUALA LUMPUR: Proton Holdings Bhd is considering to increase prices of its cars, starting January next year, due to the weakening ringgit.

Chief executive officer Datuk Abdul Harith Abdullah said 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.

“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,” he said in a statement.

To cushion the impact which has been affecting the company’s bottomline since August, Abdul Harith said 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 Proton and is affecting the industry as a whole,” the statement added.

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