KUALA LUMPUR: Proton Holdings Bhd is refraining from raising the price of its vehicles except for the new X70 and recently-launched Saga amid sharp increase in production costs.
But with the cost of raw materials keeps rising and the sales tax exemption ending soon, a price increase of new vehicles from Proton and other car companies seems inevitable.
Still, Proton deputy chief executive officer Roslan Abdullah said the national carmaker was trying to absorb the risingn production cost as much as it could, and not pass it down to consumers.
"As of today, we have no plans to increase the prices of our vehicles except for the new X70 and the recently-launched Saga," Roslan told reporters after the virtual unveiling of the 2022 Proton X70 today.
Roslan said the price of automotive parts and components had increased sharply over the past two years of the Covid-19 pandemic.
"If we can no longer absorb the costs, we have to pass it on to consumers," he said.
Prices of raw materials are rising following the ringgit's weakening and the recent supply chain disruption especially with the lack of supply of computer chips.
This was exacerbated by higher logistics cost, and the high-cost environment could worsen if the sales tax exemption for new vehicles is not extended after June 30 this year.
Last month, Malaysian Automotive Association president Datuk Aishah Ahmad cautioned that there was a strong possibility of an increase in car prices due to the increased costs borne by manufacturers.
Roslan said Proton had seen its costs to produce the X70 sports utility vehicle rising by more than RM5,000, while that of the new Saga increasing by about RM2,000.
The rising costs, however, have been reflected in the prices of the new Saga and the new X70, whose line-up now is priced from RM93,900 to RM121,800, or about RM4,000 to RM6,000 higher than before.
Meanwhile, Roslan said Proton was targeting sales of 20,000 to 24,000 units of the X70 this year.
The 2022 Proton X70 - produced at Proton's plant in Tanjung Malim, Perak - comes in five variants and offers styling updates and a new option for buyers seeking an SUV with improved fuel efficiency.
He said Malaysia's best-selling C-segment SUV now featured a 1.5L TGDi, turbocharged direct injection engine, presenting a new compact alternative to the familiar 1.8L TGDi engine.
"The X70 is a model that has maintained its position as the best-selling C-segment SUV since its launch. Over 70,000 units have already been sold and today, we have added styling updates and a 1.5L TGDi engine to the range to offer prospective buyers more choice.
"It promises a similar level of performance to the 1.8L TGDi variant while adding improved fuel efficiency, thus fulfilling the desire of our customers for an SUV that is not only outstanding in performance, features and aesthetic appeal but is also affordable to own and run," Roslan added.