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The new year has brought about new and higher prices for Honda, Toyota, Lexus, Kia, Peugeot, Citroen and Audi vehicles, with Proton possibly raising prices after Chinese New Year. But Perodua has no plans to follow suit, yet.

Perodua president and CEO Datuk Aminar Rashid Salleh said at yesterday’s 2015 performance review that the company will hold on to current prices for as long as it can take it. However, he did not rule out the possibility of raising prices should the foreign exchange situation worsen.

“We will continue to monitor until the impact is so great.. then we may need to review that (price hikes). As of now, not yet,” he said in response to questions from the media.

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Cost and prices aside, he also mentioned the reason of Perodua’s existence. “We always go back to fundamentals, that (is) the objective of setting up Perodua is to provide quality and affordable vehicles. Whether we increase prices or not, that depends on a lot of factors. We’re very sensitive to that,” he added.

It’s not that Perodua isn’t affected by the ringgit’s slump against major currencies. While the localisation rate for P2 is high – above 90% for the Axia, Myvi and Alza – the forex situation has impacted the remaining 8-10% of imported components (P2 buys Axia engine components in USD, Myvi and Alza parts in JPY), negatively affecting profitability by 25-30%.

Aminar also revealed that consumers are increasingly opting for lower end variants of Perodua models, where profit margins are thinner. Despite this, Perodua expects demand for its cars to be robust this year, and has set a 2016 target of 216,000 units, which if achieved, will be another all time high.

Perodua sold a record 213,300 units last year for an estimated market share of 32%, completing a decade as Malaysia’s automotive market leader.