According to The Malaysian Reserve (TMR), this applies to both current and future models.
It quoted a vendor who said a further price cut of 10% was expected next December, bringing the total future reduction to 30%.
This followed the call by Proton CEO Li Chunrong for prices to be slashed by 20% to ensure that vendors remain competitive.
Li said Proton would work with vendors to help them lower costs and achieve the target.
Another vendor warned however that this could affect the supply chain, as the drop in sales had eroded profitability.
He told TMR that some vendors had been unable to turn a profit as Proton’s monthly production had dropped to about 6,000 units.
Another said the 20% cut would be acceptable if the company could sustain its production volume, the report said.
According to figures released yesterday, Proton achieved 66,190 units in sales as at end-November, a growth of 2% compared to 65,069 in the same period last year.
It said this was mainly driven by sales of its Saga and Persona models.
China’s Zhejiang Geely Holdings Group Co Ltd owns a 49.9% stake in Proton after inking a RM460.3 million deal with Proton’s parent company, DRB-Hicom Bhd, earlier this year.
Under the agreement, Geely will lend expertise in the areas of production, manufacturing, operations and marketing.
Proton vendors have enjoyed more than 30 years of basically competition-free business from the national carmaker, and many are worried their business will be affected by Geely’s entrance. Many are unhappy with the 20% price reduction call.