Honda Malaysia recently announced that they will be increasing the prices for Honda vehicles effective January 2016. This is due to the depreciation of the Malaysian Ringgit.
According to AutoFreaks, the price increase is estimated to be between 2% – 3% depending on the model. New prices will be decided in December 2015 as they continue monitoring the exchange rate situation closely.
Managing Director and Chief Executive Officer of Honda Malaysia, Mr. Yoichiro Ueno said, “Over the past years, Honda Malaysia has streamlined operations in order to be more efficient and also worked hard to introduce products at very affordable prices to our customers. Since the introduction of Honda models with its current price, the Ringgit has depreciated by 20%-30% against the US Dollar. The drastic depreciation of the Ringgit has caused a significant increase to the cost of imported parts and components. Despite our efforts to reduce operational costs and expenses to mitigate the impact, we have to take the last measure to shift the impact partially to the price.”
He also added that if the Ringgit currency appreciates to the previous level, they would reevaluate the pricing structure once again.