Mazda MX-5 15

Berjaya Auto Bhd will not be looking to raise the prices of Mazda cars for the time being, according to a report by The Edge Financial Daily. This is despite the increased production costs and unstable foreign exchange – the same situation has seen the likes of UMW Toyota Motor (UMWT) raise the price on both its Lexus and Toyota models while Honda Malaysia has hinted that it will likely follow in the UMWT’s footsteps.

However, Berjaya Auto CEO, Datuk Ben Yeoh, has told the English-language daily that it might consider hiking the prices of Mazda cars should the ringgit breach the 3.8 mark against ¥100. “(As we move) towards the end of the year, we are trying to hold back for customers. There is no point for us to increase the price under the current economic environment,” said Yeoh.

“If (the price of) everything starts to increase, it will not be good for the economic environment. (So) we will maintain the current selling price by reducing other expenses,” added Yeoh. So while the group’s profit margin is currently under a fair amount of pressure, Yeoh has remained adamant that “the group will only revise the selling price should the rising cost exceed its limit.”

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Additionally, an analyst has told the publication that Berjaya Auto has already hedged against the yen at RM3.15 to ¥100 and, as a result, should be well guarded against volatile currency fluctuation. “I see Berjaya Auto having limited exposure to the foreign exchange rate,” commented said analyst.

As mentioned, come January 2016, prices of both Toyota and Lexus models will see an increase of between 4% to 16% – more affordable models are expected to receive a small hike while CBU models, like the Alphard, will probably witness a more significant jump in price. On a brighter note, Mercedes-Benz Malaysia has stated that it will maintain the prices of its car into 2016.

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