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Home»Automobile»Demand for diesel vehicles to stay high despite fuel price increase from subsidy rationalisation – MAA
Automobile

Demand for diesel vehicles to stay high despite fuel price increase from subsidy rationalisation – MAA

Anthony LimBy Anthony LimJune 17, 2024No Comments2 Mins Read
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Demand for diesel vehicles to remain high despite fuel price increase from subsidy rationalisation – MAA
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The Malaysian Automotive Association (MAA) says it doesn’t expect the sales of diesel vehicles to be severely impacted by the federal government’s targeted diesel subsidy programme, which began earlier this week and has seen the retail price of Euro 5 B10 and B20 diesel within the peninsula being increased from RM2.15 to RM3.35 per litre.

In an announcement, the association said it anticipates that the full industry sales (TIV) volume for the yr will proceed at planned levels, with any change in volume not reflecting much within the TIV, provided that diesel vehicles only account for lower than 12% of the vehicle registrations within the country.

How the move could have an impact on sales won’t be seen immediately, but a clearer indication will come about inside the subsequent month or so. Nevertheless, any dip in numbers could also be temporary.

Demand for diesel vehicles to remain high despite fuel price increase from subsidy rationalisation – MAA

It’s because the association says that demand for business diesel vehicles, pick-up trucks and vans is anticipated to stay high. It said that other than private use, users of diesel vehicles are mostly from the development, plantation, logistics, tourism and transport sectors, and such vehicles were crucial to many business operations in these sectors.

It added that while consumers can be cautious in making a purchase order decision in the beginning, they’d not hold off on a purchase order of a diesel vehicle for long, given their crucial use in lots of applications.

The association nonetheless said that having an accurate and efficient rebate mechanism may be very essential, and called on the federal government to make the subsidy quota for the transport sector clear with a view to prevent operators from raising transport rates, which might affect the general public and the country’s competitiveness.

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This Article First Appeared At paultan.org

Demand Diesel fuel High Increase MAA price rationalisation remain subsidy Vehicles
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