News & Opinion: Proton Cars to increase prices for all models effective 15th February 2016

As expected, Proton car prices will see a marginal increase of RM312 to a maximum of RM2,021 depending on model variants, effective 15 February 2016. This comes after an earlier announcement at the end of last year that they would do so.

Of course this is/was bound to happen as Proton buys a lot of its components in either completed (transmission units, electronic components etc) or raw form (steel used for pressings via suppliers, etc) in foreign currency (usually US Dollar). The US Dollar currently trades RM4.23 per USD1.00. A year ago it would have traded at RM3.23. So imagine your USD contract to purchase 10,000 gearboxes and transmission electronics at say, USD1,000 would have been RM3,230 but now it is going for RM4,230 instead. Tough. Let's blame all of this on the Finance Minister of Malaysia for not doing more for the economy, shall we?

This is also bound to happen even though Proton are not selling more cars than they want to due to weak demand for their cars at this point of time. There is a certain logic to all of this. The accountants must have decided that in order for Proton to at least make a break even point for each car, this has to be done. Economics of scale and stuff like that.

Of course, there are those that say that any price increase is a bad thing. Especially when you are seen to be a local manufacturer etc etc. 

Is it really detrimental?

I don't see this as the end of the world for Proton because the increase is considered minimal. RM312 could be for the cheapest Proton out there and even with this slight increase it still could be the first or second cheapest car on sale in Malaysia. The increase of RM2,021 could be for the higher end Suprima S models. That has lots of electronics and tech. Therefore lots of imported components. 

And do note that when you purchase a car, there are always discounts given by the manufacturers. Even after an increase in price you could definitely get a discount from Proton especially if you are patient enough (buy during sales, offers and buy during year end stock clearance or last year's model) and shop around. 

Do also note that if you are buying a Proton with financing involved, the amount could be small when amortized into a seven year loan. It could be less than a month's worth or installment to about two month's worth. But again, the choice is ultimately yours. Be prudent when shopping for a ride. Ask for discounts from the dealers and you eventually will get something.

Currently, if you intend to finance a Proton, the Interest rate of 2.8% is given for all Proton cars and a special graduate scheme with monthly instalments from RM258 a month await new car buyers. There is also a rebate of up to RM6,200 on selected 2015 cars and 30% discount on merchandise. Apart from that, under the Loyalty Reward, a rebate of up to RM3,000 is offered to all existing Proton owners who wish to replace or buy another Proton vehicle and this promotion is valid from now until 31 March 2016. PROTON is also offering free 30-point inspection to Proton owners at all PROTON authorised service centres in line with the CNY safety promotion. Terms and conditions obviously apply to whatever is stated in this paragraph.

The full list of revised prices will be disclosed further in the PROTON website when the new price takes effect.

PRESS RELEASE

PROTON TO INCREASE ITS CAR PRICES FOR ALL ITS MODELS

PROTON CARS·TUESDAY, 2 FEBRUARY 2016

PROTON TO INCREASE ITS CAR PRICES FOR ALL ITS MODELS
· Effective 15 February 2016
SUBANG JAYA, 1 February 2016 – Further to the announcement made by PROTON Holdings Bhd (‘PROTON’ or ‘the Company’) in early December 2015, the Company will be undertaking an exercise which will involve a price increase across all Proton cars. This exercise will see a marginal increase of RM312 to a maximum of RM2,021 depending on model variants, effective 15 February 2016.
This increase is in line with 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.
To cushion the impact which has been affecting the Company’s bottom line since August 2015, PROTON has put more efforts in reducing operational costs and rationalising operations where necessary. Despite these efforts, the depreciation of ringgit continues to put pressure on PROTON and affects the industry as a whole.

Customers who wish to purchase new cars are advised to visit any PROTON showrooms nationwide to take advantage of the current CNY promotion. Interest rate of 2.8% for all Proton cars and a special graduate scheme with monthly instalments from RM258 a month await new car buyers. There is also a rebate of up to RM6,200 on selected 2015 cars and 30% discount on merchandise. Apart from that, under the Loyalty Reward, a rebate of up to RM3,000 is offered to all existing Proton owners who wish to replace or buy another Proton vehicle and this promotion is valid from now until 31 March 2016. PROTON is also offering free 30-point inspection to Proton owners at all PROTON authorised service centres in line with the CNY safety promotion.
The full list of revised prices will be disclosed further in PROTON website when the new price takes effect.