MAA: We're not ready for B10 biodiesel

21 Jul 2016 / 05:41 H.

    PETALING JAYA: The Malaysian Automotive Association (MAA), which has revised its total industry volume (TIV) for the year downwards, said its biggest concern on the B10 biodiesel implementation is that many of its principals are unable to provide warranties for vehicles.
    "We've indicated to the government that we're not ready. Our biggest concern is many of our principals are saying that with B10, they cannot provide warranty (when selling a car). That is the issue. It's not that we're opposing B10. We support it but you must be able to provide warranty," MAA president Datuk Aishah Ahmad said at a press conference after announcing the market review for the first half of 2016 here yesterday.

    She said MAA has asked for alternative pumps, suggesting to the government to have petrol stations that provide both B7 and B10 diesel throughout the country.
    "We want support from our principals. We must have warranty on vehicles before we can implement (B10)."
    She said MAA had a meeting with the Ministry of Plantation Industries and Commodities on Tuesday.
    "Earlier the government announced June 1 (for B10 implementation), then they delayed it to July 1. Until today, they haven't set a date as to when it's going to be implemented because they're listening to all stakeholders – from MAA, bus and lorry operators association to other ministries and oil companies."
    UMW Toyota Motor Sdn Bhd senior manager of marketing Mohd Mazwan Mohd Safwan said car manufacturers here are concerned with the fuel quality of B10, as it will result in precipitation, especially in cold or highland areas.
    Meanwhile, the MAA has revised its 2016 TIV forecast to 580,000 units, from 650,000 units projected earlier this year, in view of the challenging economic climate and lower sales registered in the first half of the year.

    Aishah said the revised forecast took into account lower gross domestic product growth forecast, weak consumer confidence partly due to the weakening of the ringgit and tighter credit conditions, in particular for hire purchase loans.
    However, she said Bank Negara Malaysia's recent decision to cut the Overnight Policy Rate may help by lowering hire purchase interest rates slightly and reducing ownership (cost) of vehicle purchases in the long run.
    Vehicle sales in June 2016 fell marginally to 57,358 units from 57,436 in June 2015. This brings the TIV of new motor vehicles registered in the first six months of 2016 to 275,459 units, a 14.5% drop from 322,254 units a year ago. For the first half of 2016, the TIV achieved was 275,459 units.

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