It has happened. Proton has announced that prices of its cars will go up from February 15, as previously hinted at. The range of increase is from RM312 to RM2,021 depending on model, although the new price list will only be released at a later date, according to the company.
The national carmaker says that the move to increase prices is due to the impact of foreign exchange and that “many raw materials are purchased in foreign currency.” The weaker ringgit affects Proton’s operating costs and the entire eco-system chain, Proton said in a release.
The company adds that it has put in efforts to reduce operational cost and rationalise operations where necessary, to cushion the impact on its bottom line. This has been going on since August 2015. Despite these efforts, the depreciation of the ringgit continues to put pressure on Proton and affects the industry as a whole, the company reasons.
In view of this, Proton is urging buyers to take advantage of current promotions, which include interest rates of 2.8% and a special graduate scheme with monthly instalments starting from RM258 a month. Rebates of up to RM6,200 on selected 2015 cars and 30% discount on merchandise are also on offer.
Separately, under the Loyalty Reward programme, a rebate of up to RM3,000 is offered to all existing Proton owners who wish to replace or buy another Proton vehicle, valid until March 31, 2016.
Meanwhile, Malaysian market leader Perodua recently announced that it has no plans to increase prices yet. The start of the year has brought about new and higher prices for Honda, Toyota, Lexus, Kia, Peugeot, Citroen and Audi vehicles.
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AI-generated Summary ✨
Comments express frustration over Proton's planned price increase starting February 15, 2016, with many perceiving it as unfair, especially since some bought cars before the announcement. Critics argue Proton's profitability is questionable, accusing them of unfair pricing, poor quality, and mismanagement, while questioning government support and protectionism. Several commenters mention the depreciation of the Ringgit and its impact on car prices, with some blaming corruption and misallocation of national resources ("songlapping") for high costs. There is skepticism about Proton's future, with fears that increasing prices will further diminish sales and market share, and some suggest Proton's strategy may accelerate its decline. Overall, sentiments are largely negative, highlighting concerns over affordability, competitiveness, and mismanagement in the Malaysian automotive industry.