National carmaker Proton Holdings Bhd may have to increase its car prices after Chinese New Year (CNY) in February with the rising costs of imported parts due to the depreciating ringgit.
“The ringgit level now is lower as compared with a year ago, which has affected our imported parts prices,” Chief Executive Officer Datuk Harith Abdullah said after a ceremony marking the appointment of new dealers.
At 9am, the local unit was traded at 4.3930/4000 against the greenback, a far cry from the 3.57 level it was trading the same time last year.
Harith said Proton is trying its best to hold back the increase until CNY to enable its customers to enjoy a brand new car at current prices.
According to Proton, 20 to 30% of the parts in its vehicles are imported.
Honda Malaysia has increased its car prices by 2% to 3% this year, while UMW Toyota Motor has announced that it too will hike the prices of its products by 4% to 16% this month onwards.
Mitsubishi Motors Malaysia has also hinted at a similar move.
(Source: Bernama, January 14, 2016)