Due to the weakening Ringgit, PROTON Holdings Berhad is considering to increase 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 bottomline 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 PROTON and is affecting the industry as a whole.
