Kuala lumpur: The Malaysian Automotive Association (MAA) is urging the government to broaden its subsidised diesel initiative to include multi-purpose vehicle (MPV) owners, in addition to those with pick-up trucks and sport utility vehicles (SUVs).

According to BERNAMA News Agency, this appeal comes as the MAA highlights that diesel-powered MPVs represent a mere one percent of the total industry volume (TIV). The association believes that expanding the subsidy to MPV owners would have a negligible impact on government finances while significantly assisting families reliant on these vehicles.

The government had previously announced on June 22 an additional allocation of 100 litres of subsidised diesel, supplementing the existing 200 litres for eligible pick-up truck and SUV owners. MAA argues that this extension could play a crucial role in reviving consumer confidence, particularly among potential buyers who have delayed their vehicle purchases due to changes in the diesel subsidy policy.

The MAA anticipates that the enhanced subsidy mechanism will motivate consumers to reconsider their purchasing decisions, especially within the pick-up truck segment, which is gaining popularity as a lifestyle choice, alongside diesel-powered SUVs.

Following the adjustment of diesel prices on June 10, 2024, which saw retail prices surge from RM2.15 per litre to RM4.07 per litre in line with market rates, there has been a marked decline in demand for diesel-powered vehicles. The MAA reports a nearly 25 percent drop in sales for diesel vehicles, particularly in the pick-up truck and SUV categories in Peninsular Malaysia.

The association remains committed to ongoing dialogue with relevant government ministries to ensure that policy measures effectively support both consumers and the wider automotive industry.