Proton likely to increase car prices after Chinese New Year

National carmaker Proton Holdings Bhd says it may have to increase its car prices after Chinese New Year (CNY) in February with the rising costs of imported parts due to the depreciating ringgit.

"The ringgit level now is lower compared with a year ago, which has affected prices for imported parts," chief executive officer Datuk Harith Abdullah said after a ceremony marking the appointment of new dealers.

At 9am Thursday, the local unit was traded at 4.3930/4000 against the greenback, a far cry from the 3.57 level it was trading the same time last year.

Harith said Proton was trying its best to hold back the increase until CNY to enable its customers to enjoy a brand new car at current prices.

According to Proton, 20-30% of the parts in its vehicles are imported.

Honda Malaysia has increased its car prices by 2-3% this year, while UMW Toyota Motor says it too will hike the prices of its products by 4-16% from this month.

Mitsubishi Motors Malaysia has also hinted at a similar move.