Following the recent move by Hyundai Malaysia in raising prices for three of its models, reports have emerged claiming that Toyota, Honda and Mitsubishi are expected to follow suit.
A news report published by The Edge claims that Toyota, Honda and Mitsubishi are expected to raise the prices of their cars anytime now, probably as early as October.
This comes after the dismal performance of the Ringgit against other key currencies like the US Dollar, Euro, and Japanese Yen. The Ringgit has lost nearly 18 percent of its value in this year alone, reaching a 17-year low.
The Ringgit is currently trading at RM 4.41 to 1 US Dollar.
Locally-assembled cars are not immuned to the effects of foreign exchange as many key components like engines, transmissions, electronic control modules, airbags, and even pressed steel parts, have to be imported from other countries.
Officially, none of the companies mentioned have confirmed or denied the speculation. The official reply given by most companies is that they will try to maintain their prices as much as possible, but if the Ringgit doesn’t improve, an increase in prices is inevitable.
Sources have indicated that prices are likely to remain stable until the end of this year, but prices will almost certainly go up by 2016.
Last week, Hyundai Malaysia raised prices for the locally-assembled Santa Fe and Elantra, as well as the imported Veloster.
The increase ranges from RM2,000 plus for the Elantra to an eye-popping RM10,000 plus for the Santa Fe.
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