AAM expects the impact of diesel subsidy targeting on the overall sales volume of the industry to be insignificant
KUALA LUMPUR: The Automotive Association of Malaysia (AAM) expects the diesel subsidy targeting will not have a significant impact on the industry’s overall sales volume (TIV) given that diesel vehicles across the country are below 12 percent, in addition to the provision of targeted subsidies to eligible beneficiaries and sectors.
In addition, the government is also continuing to provide subsidies to the B40 group, eligible commercial vehicles, and diesel vehicle users in Sabah and Sarawak, MAA said in a statement today.
“With this implementation, it is hoped that the government can continue to give incentives or energy subsidies to the latest technology, such as hybrid electric vehicles, battery electric vehicles, and fuel cell electric vehicles,” said the association.
Since the approved subsidy does not include all the uses of the sector involved in receiving the subsidy, AAM said an accurate and efficient rebate mechanism is essential.
“It is important that subsidy quotas for this sector are made clearly to prevent transport operators from raising transport rates that will affect the public and the country’s competitiveness,” he said.
Meanwhile, AAM projects this year’s TIV to remain at the planned level as demand for commercial diesel vehicles, pickup trucks, and vans is still high.
According to him, although consumers may be more careful to make a purchase decision at the beginning, they will not deny the purchase since the need for diesel vehicles is still needed for current use.
In Malaysia, most vehicles that use diesel engines are pickup trucks, vans and commercial vehicles.
Apart from private use, the users of these vehicles are mostly from the construction, plantation, logistics, tourism and transport sectors, as well as being very important for the survival of the company’s business operations.
On June 10, the Ministry of Finance enforced the retail price of diesel in Peninsular Malaysia at RM3.35 per liter while Sabah, Sarawak and Labuan remained at RM2.15 per liter for the period from June 13 to 19, 2024
