‘Automotive sector must gear up for shift towards EV adoption, digitalisation'
Khor (fourth left) presents a souvenir to Lee.
MIRI (May 19): The automotive industry must start preparing for the ongoing transition to electric vehicles (EVs) and the growing need for digitalisation in vehicle trading and ownership.
In this regard, the Federation of Motor and Credit Companies Association of Malaysia (FMCCAM) said it was committed to supporting members.
Its president Dato Tony Khor said that while EV adoption was increasing globally, in Malaysia, fuel vehicles would remain in use for the next 30 years.
'However, the industry must prepare for change now by building technical know-how and market readiness,' he said during the federation's 47th annual general meeting yesterday.
He said since 2019, FMCCAM has partnered with ezAuto, a business-to-business online platform facilitating used vehicle buying and selling among members.
However, he noted the used car market has been increasingly dominated by similar platforms owned by large conglomerates from Singapore, Japan and China, which typically keep cars in good conditions for their own sales and pass older or poorer condition vehicles to used car dealers.
'FMCCAM members who rely on these platforms are often at the mercy of their operators, with accounts being frozen if complaints are made after purchasing problematic vehicles.
'Dealers are forced to accept lower-quality cars or risk losing access to these platforms,' he said.
He also said government-linked companies (GLCs) have entered the market, acquiring car companies and selling used cars themselves, with the GLCs taking high-quality vehicles first and selling lower-quality cars to dealers via the online platforms they invest in—squeezing dealers' profits.
Thus, the federation called on the Transport Ministry to support efforts in addressing these challenge and regulating the growing influence of online platforms controlled by powerful financial backers.
On consumer rights, Khor highlighted that used car dealers frequently faced complaints and legal cases from buyers, who would win in court or consumer tribunals.
He also noted consumer associations have repeatedly requested the government to introduce a Lemon Law similar to that in the United States, which protects buyers of defective vehicles.
'FMCCAM has opposed this for over 16 years, but recently worked with an insurance company to offer coverage for used car buyers to claim compensation if problems arise,' he said.
Meanwhile, Sarawak Transport Minister Dato Sri Lee Kim Shin officiated the opening ceremony and welcomed FMCCAM to Miri.
He also reiterated the importance of advancing digitalisation and EV adoption to ensure a sustainable future for the automotive sector in Malaysia and Asean, and pledged the ministry would do its best to support FMCCAM and its members in addressing the industry's challenges.
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