Silent showrooms for diesel vehicle traders

 They say enquiries have dried up, walk-ins have stopped, and more vehicle owners are now trying to sell their vehicles due to the soaring price of diesel.

With the price of diesel in West Malaysia now at RM6.72 per litre, potential buyers of diesel vehicles are cancelling their purchase, several car dealers told FMT. (Envato Elements pic)

PETALING JAYA:

 Diesel vehicle traders say business has fallen silent since the recent fuel price hikes caused by the Middle East conflict, with cancellations now outnumbering new purchases.

The price of diesel in West Malaysia is currently fixed at RM6.72 per litre, more than double the previous range of around RM2.80 to RM3, prompting buyers to hold back amid fears that diesel prices could rise further.

Dealers FMT talked to said enquiries have dried up and walk-ins have stopped, with more vehicle owners now trying to sell their vehicles.

In Kuantan, Mitsubishi dealer Shamsul Kamal Mahmood described the situation as the worst he has seen in seven years in the business.

“Sales are very bad. Next month could be worse if the situation continues,” he said.

The Mitsubishi Triton dealer said the vehicle was among the most sought-after models before the downturn.

“But now, new orders have stopped. There have been no enquiries or no walk-ins, only cancellations,” he said, adding that customers are increasingly asking whether they can sell their vehicles instead.

“There are too many sellers. There aren’t any buyers.”

Another dealer from Pahang, who wished to be known only as Ah Fai, said the downturn was unprecedented in two decades of selling Toyota Hilux pickup trucks.

“All our vehicles are diesel. Business is difficult. In my 20 years, I have never experienced anything like this. My business is silent,” he said.

Used car dealer Tan Meng Soo, who has operated in Negeri Sembilan and Kuala Lumpur for 15 years, said transactions have nearly come to a halt.

“The only business I get now is cancellations. Almost all my diesel vehicles are not in demand,” he said.

According to the road transport department, about 700,000 pickup trucks have been registered in Malaysia since 2000, including models such as the Toyota Hilux, Mitsubishi Triton and Ford Ranger.

Don’t succumb to panic selling

Danial Chan, vice-president of the Federation of Motor & Credit Companies Association of Malaysia, said that before the downturn, diesel vehicles could be sold within two weeks of arriving at showrooms.

The Isuzu dealer said buyers, particularly in urban areas, are postponing purchases as diesel and used vehicles are now seen as non-essential, while existing owners are rushing to sell.

“A RM100,000 pickup is now going for around RM20,000 to RM30,000,” Chan said, warning that prices could fall further if uncertainty persists.

However, he urged sellers not to panic.

“I tell my customers that if they sell now, they will take a big loss. Hold on until there is clarity. Once the situation stabilises, prices could recover because our industry still relies heavily on diesel vehicles,” he said. - FMT