Perodua may hike prices in 2017 due to ringgit drop

Perodua_Axia_Bezza-4

During Perodua’s 2016 business performance review, company president and CEO, Datuk Aminar Rashid Salleh revealed that prices of its models might go up next year. He explained that this will be unavoidable should the current economic condition continue as such.

“The situation in 2016 has been challenging, and arguably the most difficult since the ASEAN financial crisis before. It is expected that 2017 will be just as challenging, as we’ve started utilising two foreign currencies – the US dollar and Japanese yen – in our business dealings,” he said.

“Should both currencies continue to show gains against the Malaysian ringgit, this will definitely impact Perodua. Actually, at the rate of USD 1 = RM4.4, it has already impacted us, and we are forced to absorb the (cost),” he continued. The national carmaker fended off unfavourable forex conditions last year, and refused to increase its prices at the time. Similarly, Mazda also kept its vehicle prices unchanged then, although come 2017, the company will announce higher vehicle prices.

“If conditions continue as they are now, we may have to review our current prices. We can’t continue absorbing the effects of the current economy. However, various steps will be undertaken before such a move happens, and we understand that we are selling affordable vehicles to the masses,” Aminar added.

Aside from suppliers who purchase replacement parts from overseas, manufacturers who source their machines will also be affected. “The good thing is (prices for) vehicle replacement parts won’t be badly affected. For manufactures however, the effects are bigger as it involves their machinery. Collectively, this will affect Perodua,” said Aminar, who added that total TIV decreased by 15%.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • congratulation..welcome to the price hike party

    Like or Dislike: Thumb up 30 Thumb down 1
  • Sohai on Dec 05, 2016 at 12:41 am

    What’s the point of having a national car that price fluctuates against other currency? Is this made in Malaysia or not?

    Like or Dislike: Thumb up 56 Thumb down 8
    • Veneno on Dec 05, 2016 at 9:47 am

      Even though Perodua is a national car, the car built using some parts sourced from other countries.. not all parts and mechanical bits inside the car come from our own country..

      Like or Dislike: Thumb up 13 Thumb down 3
      • rapid on Dec 05, 2016 at 11:05 am

        then they should negotiate payment in Ringgit to those suppliers…

        Like or Dislike: Thumb up 7 Thumb down 1
        • kenzo on Dec 05, 2016 at 10:15 pm

          Don’t think any supplier will be dumb enough to accept payment in a diminishing currency when they’re currently being paid in the good ol USD

          Like or Dislike: Thumb up 1 Thumb down 0
    • camtakpro on Dec 05, 2016 at 1:21 pm

      You still don’t understand? They say ‘may’ increase price. Meaning it has nothing to do with currency exchange. More like they are checking on the market response whether to increase price or not.

      If Kia manage to sell facelift cerato without price change wtf Perodua bullshiting.

      Like or Dislike: Thumb up 10 Thumb down 0
  • So it begs to question; if P2 was a “national” car kompeni, why it needs to raise prices, if parts sourced locally?

    Like or Dislike: Thumb up 26 Thumb down 6
    • syed1959 on Dec 05, 2016 at 12:08 pm

      Commute by train is more convenient. why buy cars….

      Like or Dislike: Thumb up 0 Thumb down 1
      • YES!! Thats the thing! Let them raise prices until Kingkong come. If MY pipu ditch their propensity for cars and use public transport, we dun need to gip an F to these bloodsuckers. Lets make our PM’s vision a great success!

        Like or Dislike: Thumb up 3 Thumb down 1
  • Alson P on Dec 05, 2016 at 3:04 am

    Cant be help..! It’s ok just increase 1% or 2% people still buy Perodua..

    Like or Dislike: Thumb up 9 Thumb down 3
    • Ismet on Dec 05, 2016 at 12:13 pm

      Perodua is owned by KWSP & UMW. More price hikes, More better!!!

      Like or Dislike: Thumb up 0 Thumb down 3
      • Jeffrey Read on Dec 06, 2016 at 1:46 pm

        Imagine all those price hikes that is going to happen, with G.S.T. dragnet in place the government is literally laughing all the way to the bank for doing nothing!

        Like or Dislike: Thumb up 0 Thumb down 0
  • Got hoe leong on Dec 05, 2016 at 6:07 am

    Perdua greedy close my sell bezza model x 30 November 2016.delivered my car 1 December. But company give discount $3,000 on 2 December. Not fair to customer. Thanks

    Like or Dislike: Thumb up 18 Thumb down 2
  • Pak Atan on Dec 05, 2016 at 7:09 am

    feel the pain.

    Like or Dislike: Thumb up 9 Thumb down 0
    • Valak2050 on Dec 05, 2016 at 12:15 pm

      inb4 Seperti dijanjikan, harga kereta akan diturunkan secara berperingkat hingga 2017.

      Like or Dislike: Thumb up 3 Thumb down 0
  • ducatiscrambler on Dec 05, 2016 at 7:37 am

    I’m not even mad now. Like before that the GST was implemented by the government on 1st of April as an April Fool’s joke, we’re promised reduction in car prices of up to 4% with the abolishment of Sales Tax. The the Ringgit started to slide, which pretty much negates the savings, and to an extent in fact, car prices increased because some manufacturers reckon they have to increase their car prices because of GST incurred at various levels of the supply chain. Later on, some dipshit made a powerpoint (I’m pretty sure you guys have seen it) about reduction in car prices. They took the car with the lowest trim level and compared it with car that had a higher trim level that was on the market a couple years ago, and they said savings exist of up to 15% or around that ballpark. We’re having election soon in 2017 (yes an early one), roughly 4 years ago, we were told that we would witness 30% in reduction of car prices. Where is it? The last time someone did that in the car industry was Hitler. Hitler engineered and marketed the Volkswagen Beetle so well, convincing the people to splurge their life savings on it. No one, EVER received the first batch of the car because it was an underlying chassis for military vehicles. But hey, at least Hitler realised his plan to create something out of nothing. My point is, i don’t care if the country is run by BN or DAP or PAS as of late, I just think people can be more honorable in what they say. 30% of discount? We see a price hike in petrol, in food due to the weakening currency. You think the food in Olive Garden, Chilli’s, Friday are actually worth RM30-40 per dish? If you divide it by 4, it’s roughly what Americans pay for in the US (10USD pre-GST and tips). Which means that in Singapore where the currency is high, they only pay roughly 10SGD, while they earn as much as us, but in SGD. For the macai naysayers, slap yourself with some common sense in you. We the people elect the representatives, and subsequently the government to run the country. But hey, let’s play the blame game shall we? “THE CHINESE AND JEWISH OPPORTUNIST ARE BEHIND THIS” “THE GOVERNMENT DID REDUCE THE PRICES, ITS JUST THAT PESKY CHINESE RAISED THE PRICE TO GIVE IT TO THEIR JEWISH MASTERS”. Keep telling yourselves that, keep telling. Any sane person who has done economics would tell you that protectionist policy like ours is not feasible in a long run, and we have seen it.

    Well-loved. Like or Dislike: Thumb up 55 Thumb down 2
    • Hey come on! You do get a 30% discount… you just need to buy and pay first, then instant 30% discount the same day. It’s true.

      Like or Dislike: Thumb up 0 Thumb down 1
  • Got hoe leong on Dec 05, 2016 at 7:37 am

    Greedy greedy greedy perodua . bought my car from sale Alex Lee perodua banyan baru penang.bezza Model X cash.close deal 25 Nov. 2016 . delivered car to me 1 December 2016.perodua giving away discount $3,000 on 2nd December.is it fair.please those going to buy from perodua how much discount they will give away for Chinese New Year.Thanks

    Like or Dislike: Thumb up 11 Thumb down 6
  • Henry on Dec 05, 2016 at 7:39 am

    Make no difference. Fewer people are buying cars. Buying food is a priority.

    Like or Dislike: Thumb up 19 Thumb down 1
    • Low Budget on Dec 05, 2016 at 11:06 am

      Even servicing cycle for my car also stretch from the normal 10,000KM to 12,000KM.

      Like or Dislike: Thumb up 1 Thumb down 0
  • Gaviny on Dec 05, 2016 at 8:04 am

    This is hard to believe that a 100 percent locally made car is subject to foreign currency fluctuation.

    Sourcing machines from overseas ?

    Every car you build you buy a new machine ?

    Talk about opportunistic profit making

    Like or Dislike: Thumb up 18 Thumb down 3
  • Faiz Roslan on Dec 05, 2016 at 8:25 am

    can’t blame perodua, being a national car they have been subsidizing the car prices, which should be 10k more than what it is now.. the reason they priced lower so ppl can afford to buy car.. now the bite is too hard to chew, they have to let go of this corporate social responsbility to cover the higher cost… theres nothing much gov can do abt this since currency is supply demand, ringgit drop is just part of normal cycle, nothing to be alarmed off as our finance minister is doing everything he can to boost up the ringgit.. hope the rakyat can give him longer time to be finance minister and grow malaysia again and again

    – Faiz Roslan CEng

    Like or Dislike: Thumb up 2 Thumb down 48
  • Vaiopavillion on Dec 05, 2016 at 8:39 am

    Janji ditetapti.. hahaha!

    Like or Dislike: Thumb up 15 Thumb down 1
    • Manifesto x bleh pakai..Rakyat kenna kencing lg.

      ITulah lain kali kenna pileh betol2^^

      Like or Dislike: Thumb up 4 Thumb down 0
  • wow all use foreign currencies as excuse to increase price.

    i wonder if they ever reduce price should 1 day the ringgit appreciates back ^^

    Like or Dislike: Thumb up 29 Thumb down 1
  • passion on Dec 05, 2016 at 9:11 am

    Oh Boy here we go again!

    Like or Dislike: Thumb up 5 Thumb down 0
  • Again, we are a local based automotive industry. Not like the parts in Perodua vehicles are imported or made in Japan! So why the depreciation of RM got to do with international currency like Japan Yen?

    Like or Dislike: Thumb up 5 Thumb down 2
    • stang on Dec 05, 2016 at 9:41 am

      I doubt every single nut and bolt is actually made in Malaysia. Many parts and components are probably imported from Thailand or wherever. This trading would not be Thai Bhat vs. Ringgit… it would be in USD. Plus, even if every screw was made in Malaysia, the raw material like iron and steel could come from overseas so that is in USD. This is how inflation works due to a weak currency. Don’t blame Perodua for bad economic conditions.

      Like or Dislike: Thumb up 3 Thumb down 7
    • Faiz Roslan on Dec 05, 2016 at 11:10 am

      hello? local made doesn’t mean materials are source locally. raw materials can be from overseas and the assembly is done here, that is why i said earlier, perodua itself its a continental grade car priced at local subsidized car prices as the government want to help the locals to afford cars. ringgit drop is normal, and part of normal cycle, so just accept the fact.

      – Faiz Roslan CEng

      Like or Dislike: Thumb up 1 Thumb down 15
      • Continental grade tang mana Perodua tu?

        Like or Dislike: Thumb up 5 Thumb down 0
      • econ101 on Dec 05, 2016 at 12:41 pm

        if you know how to manage your risk, you would typically negotiate your deals in RM.
        you are a car manufacturer. you are not suppose to speculate in currency but to hedge your currency exposure.

        Like or Dislike: Thumb up 0 Thumb down 0
  • Get your facts straight people on Dec 05, 2016 at 9:43 am

    This is why eventhough Proton makes shitty cars, I at lease respect them when they call themselves a national car maker. A lot of it is sourced locally or through MNCs that have a strong local presence to support them.

    Perodua on the other hand depends on Daihatsu giving them parts for their cars, but still have the galls to call it a national car. Perodua cars is assembled locally, but parts are not manufactured locally. Over-glorified CKD shop, that’s what Perodua is.

    Like or Dislike: Thumb up 8 Thumb down 3
  • Ben Yap on Dec 05, 2016 at 10:00 am

    kerajaan promise 30% lower car price…. how now? can achieve or not?

    Like or Dislike: Thumb up 9 Thumb down 1
  • Vote with your wallet..See wether they still want to increase price further or not..Economy down,buying power down,increase price,more people will buy is it ?

    Like or Dislike: Thumb up 10 Thumb down 0
  • Mikey on Dec 05, 2016 at 10:47 am

    Yah, hike while U want. Come 2018(June), U will be crying bcos most of your cars do NOT have ESC. Now that the Gov have made it mandatory for all cars sold past 6/2018, U still think M’sian are stupid to buy P2 other than the Bezza ??! I can GUARANTEE P2 will loose more “if” U hike your prices.

    Like or Dislike: Thumb up 5 Thumb down 0
  • sohhai on Dec 05, 2016 at 11:44 am

    Funny, I remember reading somewhere that Perodua’s local content is as high as 95% so why should they increase the price when RM drops? The price increase for the 5% imported parts should not be so huge that P2 cannot absorb

    Like or Dislike: Thumb up 9 Thumb down 0
  • C.P. MOHAN on Dec 05, 2016 at 12:21 pm

    Perodua a rebadged JAPANESE assembler who want us to believe it is ANOTHER “National car”.

    Like or Dislike: Thumb up 4 Thumb down 0
  • camtakpro on Dec 05, 2016 at 1:11 pm

    Yes. Just hike 100% or more. I welcome Perodua doing so. And fill up the stock yard.

    If I’m proton I would prepare a full line up of facelift full ESC models, and a model to fight axia and have massive discount on old models to clear stock. Gain market share and strengthen the spare parts ecosystem.

    Oh well this is proton. So they might follow Perodua increase price. Lol.

    Like or Dislike: Thumb up 0 Thumb down 1
    • Even if they hike in tandem with P2, their lineup still valued for money when compared.

      Like or Dislike: Thumb up 1 Thumb down 1
  • Akuinsanyg lemah on Dec 05, 2016 at 3:49 pm

    Siapa cakap perodua kereta nasional memang banggang….

    Like or Dislike: Thumb up 0 Thumb down 0
  • old horse on Dec 05, 2016 at 11:07 pm

    already said for years, if proton able to produce an export model, this ringgit drop thing already earned them millions! in USD for export!

    thats the whole problem of all GLCs, lack of competition but end up dying and pulling the nation down

    Like or Dislike: Thumb up 2 Thumb down 0
  • Kesempatan on Dec 16, 2016 at 8:42 am

    Kereta nasional sepatutnya jual dgn harga yg jauh lebih murah kepada rakyat sendiri untuk mengurangkan beban rakyat malaysia ..ini menteri2 jual kereta nasional ke luar negara lebih murah tetapi mahal di negera sendiri…menambahkan lagi beban rakyat sendiri.mana 30% price drop seperti yg dikatakan oleh pm kita..janji pantat saja

    Like or Dislike: Thumb up 1 Thumb down 0
 

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