KUALA LUMPUR: The Federation of Motor and Credit Companies Association of Malaysia (FMCCAM) foresees that the sales of diesel-powered pickup trucks would be affected once the rationalisation of diesel subsidies was in place.
FMCCAM president Datuk Tony Khor said this was due to the higher cost incurred by consumers and companies using pickup trucks to deliver business supplies.
He urged the government to clarify on the implementation of the targeted subsidies and the groups set to receive the subsidies.
"Definitely the pickup business will be affected. People are now buying pickup vehicles because diesel is cheap but if a higher cost is inflicted, their business is definitely going to be affected.
"We're still waiting for further details from the government," he said, adding that pickup trucks are very popular in Malaysia with Toyota alone selling at least 20,000 units.
He said businesses that used pickup trucks to transport items would also be affected considering that most of the vehicles were registered under private use and not included in the two groups set to receive subsidies - logistics or public transport.
Last week during the 2024 Budget presentation, it was announced that the government was planning to rationalise diesel subsidies in phases, allowing subsidised prices for select users including logistics companies while charging higher prices for others to prevent subsidy leakage.
Meanwhile, diesel-powered vehicle users also voiced their concern on the subsidy rationalisation adding that they might have to shift to a petrol-run vehicle should diesel was no longer subsidised.
Events specialist Timothy Anthony, 30, who drives his four-by-four for about 700 kilometres per week, said he might have to spend double the amount he currently spends on diesel which would pose a burden to his cost of living.
He said the government should enhance the country's enforcement if the government wants to tackle diesel smuggling.
"As it stands, I'm spending RM150 weekly on diesel alone. That's RM600 a month. Should the price per litre go up to RM3.75. That's approximately RM260 weekly, and RM1,050 monthly. Almost double my monthly expenditure on diesel.
"It's either subsidised for all or not at all. And if diesel smuggling is the issue they're trying to tackle, perhaps enhance the country's enforcement? Watch people illegally stocking up on diesel now," he said.
He added that the pickup truck was necessary for his line of work as he has to haul things back and forth.
"Logistics companies are not the only businesses that run trucks on diesel, what about small businesses? Landscapers, fruit vendors, technicians and the likes? Vehicles are not the only motors that run on diesel, what about power generators, large and small, ones to power remote areas as well?
"A petrol SUV would probably be the next best option, however, SUVs are built with intent as people carriers first. Hauling items second," he said.
He added that he would consider switching to petrol-powered vehicles should the government come up with schemes to liquidate Hire Purchase loans of diesel vehicles for people to change their vehicles.
Jafshafni Marican, 48, said the government should improve road conditions before increasing any costs vehicle-related as it leaves her no option but to own a four-by-four.
She said she would consider selling her four-by-four as it would increase her cost of living and lifestyle.
"A four-by-four diesel vehicle costs about RM150,000. Road tax per annum is almost RM800. The reason why I have the truck is because the roads are terrible, and I do a lot of charity work such as animal rescue, and deliver essential items during the floods at my own initiatives.
"If there is any increase (in diesel cost), I will have to stop helping others in need I presume.
"Also, as a single female, living outstation alone, and travelling to the outskirts of Johor, a truck is a necessity for me," she said.