In Malaysia, most diesel engine vehicles are pickup trucks, vans, and commercial vehicles.
The MAA Predicts that This Year’s TIV of Vehicle Sales Will Remain at the Forecasted Level
The Malaysian Automotive Association (MAA) has predicted that the targeted diesel subsidy programme will have an insignificant impact on the total industry volume (TIV) of vehicle sales.
In a statement on Friday, 14 June 2024, the MAA explained that this expectation is based on the fact that diesel vehicles account for less than 12 per cent of all vehicles nationwide. The government is also providing targeted subsidies to eligible recipients and sectors.
The MAA noted that the government continues to subsidize the bottom 40 per cent (B40) income group, eligible commercial vehicles, and diesel vehicle users in Sabah and Sarawak.
“With this implementation, we hope that the government can continue to offer incentives or energy subsidies for the latest technologies, such as hybrid electric vehicles, battery electric vehicles, and fuel cell electric vehicles,” the association stated, as quoted by the Bernama News Agency.
However, the MAA acknowledged the importance of an accurate and efficient rebate mechanism, given that not all eligible sectors are covered by the approved subsidies.
“It is essential that the subsidy quotas for these sectors are clearly defined to prevent transport operators from raising transport rates, which would impact the public and national competitiveness,” it explained.
Additionally, the MAA predicts that this year’s TIV will remain at the forecasted level, as demand for commercial diesel vehicles, pickup trucks, and vans remains high.
The association believes that while consumers may initially be cautious, they will not avoid purchasing diesel vehicles, as these are necessary for various purposes.
In Malaysia, most diesel engine vehicles are pickup trucks, vans, and commercial vehicles. Apart from private use, these vehicles are primarily employed in the construction, plantation, logistics, tourism, and transportation sectors, which are essential for business operations.
On 10 June, the Ministry of Finance set the retail price of diesel in Peninsular Malaysia at RM3.35 (£0.56) per litre. In Sabah, Sarawak, and Labuan, the price remained at RM2.15 (£0.36) per litre from 13 to 19 June 2024.
