September new car sales in Malaysia drop teamcar - NEW car sales dipped nearly 8,000 units to 42,884 units year-on-year in September from 50,542 units registered in the same month last year, the eighth consecutive month of decline.

Sales volume will not get better this month, according to the Malaysian Automotive Association (MAA).Sales for September was 9.1 per cent or 4,305 units lower than in the previous month, MAA noted in its interim sales and production data released yesterday.

MAA said sales volume for October is expected to be lower than September. This is due to the short working month because of the festive holidays.The sales decline in September was in line with MAA's forecast of a 6 per cent contraction of the total industry volume for the whole year.

MAA had said 520,000 units of cars, vans and sports utility vehicles (SUVs) would be sold this year, lower than the 551,042 units sold in 2005 and also fewer than its original forecast of 565,000 units announced in January.Analysts said tough market conditions, coupled with low used car value and tighter loan procedures, had caused domestic car sales to drop.

Rising inflation, slower economic growth and cautious consumer sentiment were also to blame.  ¶ 1:08 PM