Proton might raise prices due to weakening ringgit

KUALA LUMPUR: Proton Holdings Bhd is considering increasing the prices of its cars starting January 2016, due to the weakening ringgit.

In a statement on Tuesday, chief executive officer Datuk Abdul Harith Abdullah said many raw materials are purchased in foreign currency. The weaker ringgit affects the company’s operation cost and the entire eco-system chain, he said.

“Hence, we are evaluating our price structure and the percentage of the price increase will depend on the models,” he 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.

To cushion the impact, which has been impacting Proton’s bottomline since August 2015, the company has put more effort into reducing operational costs and rationalising operations.