Malaysia's Proton increases car prices

Asian Economic News, Feb 12, 2001

KUALA LUMPUR, Feb. 8 Kyodo

Malaysia's national car company Perusahaan Otomobil National Bhd. (Proton) announced Thursday a price increase of up to 7.2%, 3,200 ringgit (about $840), on some of its models.

Proton said in a statement the government approved the price hike Jan. 31.

The 1.3- and 1.5-liter versions of the Proton Iswara and Proton Wira, both sedan and hatchback, are now more expensive by 1,400 ringgit to 3,200 ringgit.

An Iswara will now cost between 36,000 ringgit and 44,000 ringgit while a Wira will range from 42,000 ringgit to 51,000 ringgit.

''Proton has not raised its selling price in the last five years, despite rising costs, so as not to burden consumers during the economic crisis that affected the country,'' Proton Director of Operation Kisai Rahmat said in the statement.

When news first surfaced Wednesday that Proton had won the government's nod to raise price, its share price went up 8% to close at 6 ringgit, its highest in seven months.

Proton sells about 100,000 units of the Iswara and Wira cars each year, almost 45% of the passenger car market.