Much attention has been paid to the government’s fuel subsidy rationalisation programme, which is set to have significant ramifications on the lives of most Malaysians. The move has already seen the price of diesel rise to RM3.35 per litre, helping to reduce smuggling but also exacting an as-yet-unknown impact on the cost of living. All this before an imminent (and even more impactful) subsidy removal for RON95 petrol.
Despite this, the Malaysian Automotive Association (MAA) isn’t expecting the programme to have a huge impact on car sales. We asked about the effect of the diesel subsidy removal at the organisation’s market review event this morning, and president Mohd Shamsor Mohd Zain said that while there will be a reduction on sales, MAA does not expect it to be significant, given the small market share of diesel-powered vehicles and lack of alternatives.
“MAA feels that [the diesel subsidy removal] is still not going to disrupt the TIV [total industry volume] much, especially with the TIV [of diesel-powered vehicles] being only about four per cent of the whole TIV. And on top of that, there are not many alternatives that are available on the market to replace diesel vehicles.”
He added that while MAA has seen an impact on commercial vehicle sales due to buyers’ wait-and-see attitudes as a result of the diesel subsidy removal, the majority of the decrease reported in the first six months of the year was actually caused by the stabilisation of sales, the industry having cleared two years worth of backlog.
Mohd Shamsor, who is also UMW Toyota Motor’s marketing group director, reiterated the organisation’s stance when it came to the upcoming removal of RON95 petrol subsidies, saying that the diversity of powertrains on the market – including hybrid and electric vehicles – will help minimise the impact. “All the makes have strategies around [the subsidy removal] moving forward,” he added, although he did not elaborate on those strategies.
The fuel subsidy rationalisation programme kicked off on June 9, beginning with the raising of diesel prices in Peninsular Malaysia; targeted subsidies are still being provided under the Budi Madani scheme. Details of a similar programme for RON95 petrol have yet to be announced but is expected to be finalised soon.
In the meantime, the MAA is pressing ahead with the upwards revision of its full-year TIV target from 740,000 to 765,000 units. This comes after the industry reported a 6.6% increase in sales in the first half of the year to 390,256 units.
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Really? Ford might be the first to close shop with selling solely diesel pickup
What “anal”yst smoking?
Fuel is still cheap
Even if RM3.35
MAA likes to ….
Diesel car sales have slowed badly.
Most used cars dealers are reluctant to accept diesel car trade ins.Eevn if they take the risks,the valuation is revised downwards.
ICE cars sales n EV sales have stabilised.
Wait..when the Rafizi dude announce his petrol floatation surprise..see how high the sales is.
If that is the case, bring it on and see what will happen. Immediate to 3.35/liter
Since they can remove subsidies and float the fuel prices. Why not just invite back GST rather then implementing E-invoicing to burden those small business and petty traders
sorry didnt small business and petty traders need to file for gst and not einvoicing (below 150k sales as per announced). so which are more burdensome to them?
Not very hard to spot high testosterone level.
Cause there’s where the most money being laundered.
See all those boutiques and burger shop with hardly any clients all the time but reporting tens thousands sales?
Ask those driving big nice cars what they do for a living, they will tell you something like… I run a successful toufu empire which nobody ever seen or heard of.
System owned by different set of crony
of course won’t be affected coz we don’t have a choice. it’s like saying that you increase the price of rice, will the sale of rice be affected too?
Should petrol subsidy removed, car duty tax should also be reduced since our country is oil producing country. Take China for example, their RON 92 (non Subsidised) roughly the same price as our RON100, but their latest Mini Countryman JCW is about RMB400k (~MYR270k) vs our malaysian price of MYR400k. I hope our government should be considered to us rakyat.
Gomen treat us like their piggy banks. No money take more from rakyat while they maintain their wasteful lifestyle
Well yes obviously people still need to get from point A to point B. They are saying like the people have a choice.
The same one that said diesel pickup sales will not drop much, right before diesel pickup sales crashed. This gomen maseh bole caya ke?
Trusting this gomen is like bending over for PMX to have his fun while menteri formula bahlol records the whole scene and uploads the video to xhamster
But we PH voters like it screaming “Take it daddy! Take it harder!!”
This article basically summarised as follows “Price of rice increases expected not to impact the sales of rice moving forward” or perhaps “Increased Price of cooking oil not expected to impact sales figures much. Rakyat can use less oil or eat steamed food”. No choice. How about reducing taxes on cars then?
Yeah right. My dad hilux only run once since the diesel price went up.
Bought when he was doing construction works, but still being used after that, as it still consume less fuel expenses than his car.
Diesel vehicles cost significantly more in Insurance & Rtax, it was no problem before, very true at great times when diesel cost just half of petrol. Acceptable even when they were priced roughly the same.
Madani should be responsible & lower those when they’re no longer cost saving to own them. Especially now as we cant even get a decent price to sell them off.
Difficult to sell that hailat? Just leave it overnight at secluded parking lot with keys inside and come back tomolo to report it stolen and likely disappear to thailand. Go insurance claim total loss of theft more profitable than selling it.