Proton says it will continue to absorb the rising cost of raw materials in order to maintain its vehicle pricing
Earlier today, it was reported that manufacturers are eventually expected to increase new car prices due to the higher cost of raw materials and logistics brought about by the weakening of the ringgit. The Malaysian Automotive Association (MAA) said that as things stand, a price hike would be unavoidable.
However, MAA president Datuk Aishah Ahmad said car companies have not yet decided to increase car prices, and are continuing to absorb the extra costs. Proton is one of these automakers, as Berita Harian reports.
According to its deputy CEO Roslan Abdullah, the national carmaker is continuing to absorb the rising cost of raw materials so that the price of its vehicles can be maintained, and had not yet decided on anything related to that front.
“Proton has not decided anything yet for now. If there is (an increase or otherwise), we will announce in the near future. For now, we are still trying to absorb the increase in costs,” he told the publication. However, he added added that should costs continue to rise and further impact its vendors, then it was likely that the company would have to pass some of the increase on to its customers.
The carmaker is already set to revise prices of its models with the re-implementation of the sales and service tax (SST) into their selling price. On May 1, it said that any vehicle orders placed from that date would see these only being delivered after the SST exemption period ends on June 30.