MAA: Diesel Vehicles Sales To Remain Strong, Backbone Of Commercial Industry

The Malaysian Automotive Association (MAA) has voiced its support for the government's recent implementation of targeted diesel subsidies. As a refresher, diesel prices in peninsular Malaysia has risen from RM2.15 to RM3.35 per litre.

MAA highlighted the critical role diesel engine vehicles, including pickup trucks, vans, and other commercial vehicles, play in Malaysia across vital sectors such as construction, agriculture, logistics, tourism, and transportation.

Therefore, despite the price hike, MAA anticipates a minimal impact on the Total Industry Volume (TIV) of vehicles. The association notes that diesel vehicles currently account for less than 12% of total vehicle sales in Malaysia.

The targeted subsidy approach is designed to benefit specific recipients and sectors which includes the B40 income group, qualifying commercial vehicles, and diesel vehicle users in Sabah and Sarawak ensuring operation without disruption.

However, MAA did also point out that the approved subsidies do not comprehensively cover all sectors, necessitating an accurate and efficient rebate mechanism. Furthermore, clear definitions of subsidy quotas for each sector is crucial to prevent transportation operators from increasing rates.

Moreover, the association emphasised the importance of extending government incentives and subsidies to the latest vehicle technologies, including hybrid electric vehicles (HEV), battery electric vehicles (BEV), and fuel cell electric vehicles (FCEV). This move would promote clean, sustainable transportation options in Malaysia.

Looking ahead, MAA predicts that this year’s TIV will remain stable at projected levels. With targeted subsidies and ongoing support for advanced vehicle technologies, Malaysia's automotive industry is poised to thrive, balancing economic needs with sustainable growth.