Diesel-powered MPV owners should get extra 100 litres subsidy, says MAA

KUALA LUMPUR, June 26 — The Malaysian Automotive Association (MAA) hopes the government will consider extending the application for the additional 100 litres of subsidised diesel to multi-purpose vehicle (MPV) owners.

In a statement, the association said that currently, the measure is only available to eligible pick-up trucks and sport utility vehicle (SUV) owners.

“As diesel-powered MPVs account for only about one per cent of the total industry volume (TIV), extending the subsidy to this segment would have only a minimal fiscal impact while providing meaningful assistance to families who depend on these vehicles,” it said.

On June 22, the government decided to provide an additional 100 litres of subsidised diesel on top of the existing 200 litres allocation for eligible owners of pick-up trucks and SUVs.

Meanwhile, MAA believes that the enhanced subsidy mechanism will help restore consumer confidence, particularly among prospective buyers who had postponed their vehicle purchases following the diesel subsidy rationalisation.

“The move is expected to encourage consumers to revisit their purchasing plans, especially in the pick-up truck segment, which has increasingly become a popular lifestyle vehicle, as well as diesel-powered SUVs,” it said.

Since the diesel price was floated on June 10, 2024, resulting in the retail price increasing from RM2.15 per litre to RM4.07 per litre based on market rates, MAA observed a significant decline in demand for diesel-powered vehicles.

“Sales of diesel vehicles, particularly within the pick-up truck and SUV segments in Peninsular Malaysia, have fallen by almost 25 per cent,” it said.

MAA looks forward to continued engagement with the relevant ministries to ensure that policy measures support both consumers and the broader automotive industry. — Bernama