CAR PRICES WILL GO UP, MAA PREDICTS AMID WEAK RINGGIT, SHARP RISE IN PRICE OF RAW MATERIAL & SHORTAGE OF COMPUTER CHIPS

Vehicle prices likely to go up, says MAA

PETALING JAYA: Vehicle prices are expected to rise due to an increase in the price of raw material following the ringgit’s weakening and the lack of supply of computer chips.

Malaysian Automotive Association (MAA) president Aishah Ahmad also said there was a strong possibility that there would be an increase in car prices due to the increased costs borne by manufacturers.

“Rising raw material prices, logistics costs, and the ringgit’s weakening are among the reasons manufacturers may have to increase vehicle prices,” she said.

“However, this has not been decided yet.”

Meanwhile, Proton Holdings Bhd deputy CEO Roslan Abdullah said the national car maker was still trying to absorb the rising cost of raw materials so as to maintain the price of its vehicles.

However, he said Proton may have to pass on some of the cost increases to customers if the situation worsened.

“We have not decided anything yet. For now, we are still trying to absorb the cost increase,” he said.

Last month, MAA reported that vehicle sales in the country increased to 73,222 units in March, compared to 64,938 units in March 2021.

Sales of passenger vehicles improved to 65,902 units in March compared to 58,498 units in the same month last year, while sales of commercial vehicles rose to 7,320 units in March compared to 6,440 units in March 2021.

MAA also said that the year-to-date sales volume for March 2022 was 12.8% higher at 159,752 units compared to 148,155 units during the corresponding period in 2021.

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