SHAH ALAM: DRB-Hicom Bhd has no plans now to increase the prices of cars under its stable at the moment despite the challenging economic scenario, its group managing director, Tan Sri Mohd Khamil Jamil said.
He said instead, the group has outlined plans to cushion the impact of the slower economy and sliding ringgit.
The plans will be carried out at the corporate office and across operating companies through cash flow management and cost-sensitivity measures, he told reporters at the sending-off ceremony for the first batch of International College of Automotive (ICAM) students to Britain on Tuesday.
ICAM is part of Hicom University College Sdn Bhd, a wholly-owned subsidiary of DRB-Hicom.
“Our automotive segment has been affected naturally because most of our marques are completely-built-up, while our property has also been affected as there are fewer buyers who are qualified for housing loans,” he added.
The diversified conglomerate’s core businesses are automotive, services and properties.
However, Mohd Khamil said the situation was not serious as the group had continuously taken steps to mitigate the impact of the sliding ringgit.
“For the time being, we are not going to increase the prices because we are sensitive to the rakyat needs, so we are not taking this (situation) as an opportunity to increase the prices,” he added.
DRB-Hicom, which has 10 companies specialising in manufacturing and engineering, imports raw materials but a major portion of its needs are locally-produced. Hence, it is not much affected by the weakening ringgit.
“We have been absorbing the cost as we are sensitive to the country’s economic development and we want to assist the rakyat and government in overcoming the difficulties that we are facing now,” Mohd Khamil said.
DRB-Hicom posted a lower pre-tax profit of RM16.6 million for the first quarter ended June 30, 2015 from RM185 million in the same period last year while its revenue declined 20.8 per cent to RM2.9 billion from RM3.7 billion previously.
Keyword: No price increases for cars in DRB-Hicom's stable