Sales of new vehicles in Malaysia may drop this year TEAMCAR - Sales of new vehicles may drop this year, the first time in eight years, amid cheaper second- hand cars, higher interest rates and stricter lending procedures, the Malaysian Automotive Association said.

MAA said 520,000 units of cars, vans and sports utility vehicles would be sold this year, lower than the 551,042 units sold in 2005 and also less than its own forecast of 565,000 units announced in January.

Last year, Malaysia sold 13 per cent more vehicles than in 2004.

Aishah said Malaysian car sales, which also suffered declines in 1986, 1992 and most recently 1998, may stabilise in the second half with sales, at the least, to be maintained from a year ago in a-best-case scenario. (BUSINESS TIMES)  ¶ 3:42 PM