SHAH ALAM: Total vehicle sales in the first half of this year (1H15) are expected to rise on the back of aggressive product launches and affordable vehicle ownership costs, said Malaysia Automotive Institute (MAI) chief executive officer Madani Sahari.

Without revealing any specific targets, Madani said sales growth in 1H15 is expected to drive total industry volume (TIV) to meets its target of 700,000 units for the year.

“At this moment, we are still maintaining this year’s TIV of 700,000 units. In fact, our data sourced from the Road Transport Department showed that vehicle sales for February 2015 have increased,” he told reporters after launching “The Roundtable Dialogue on the Review of the Jidoka Concept” here yesterday.

To meet rising demand for cleaner fuel in Malaysia, Madani said the government will roll out the Euro-5 diesel in most cities in the country this year, especially in the Klang Valley, as well as the northern and east coast regions.

Currently, Boustead Petroleum Marketing Sdn Bhd (BHPetrol) offers Euro-5 diesel at 11 of its stations in Johor. The fuel is sold at a 10 sen premium to the current diesel price.

Madani also said the government has established a special fund to deal with potential double taxation for existing vehicle stocks, ahead of the implementation of the good and services tax (GST) tomorrow.

“There are mechanisms to deal with this issue. The fund has been set up to deal with potential discrepancies, and we are in constant communication with industry association, manufactuters and dealers to resolve this amicably,” he added.

As for the cash-for-clunkers programme, Madani said the government is still conducting a study and will provide updates later in the year.

“Our focus right now is the GST and its impact on auto players. We will have to revisit the programme (cash-for-clunkers) at some point later,” he added. The cash-for-clunkers is a car rebate programme in which vehicles older than 10 years will be exchanged for cash to prevent a crippling plunge in sales.

This article first appeared in The Edge Financial Daily, on March 31, 2015.