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Proton has announced that it is re-evaluating its pricing structure for 2016. The local carmaker says that due to the weakening ringgit, it is considering to increase the prices of its cars starting from 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,” explained Datuk Abdul Harith Abdullah, CEO of Proton.

Proton further added that the price increase is “seen as an industry situation,” with prices having to be raised to compensate for the effects of the lower ringgit. It’s said that this has been affecting the company’s bottomline since August 2015. To cushion the impact, Proton has put more efforts in reducing operational costs and rationalising operations where necessary.

The ringgit devaluation has caused a stir in the market, with brands such as Honda, Toyota, Lexus and Mitsubishi all confirming price hikes for 2016. BMW, Nissan and Perodua have each said that they would consider doing the same if the situation continues to worsen.