AUTO SALES TO DROP 8.1 PCT TO 501,500 UNITS IN 2009

KUALA LUMPUR, Jan 6 (Bernama) -- International consultants Frost & Sullivan
expects sales of vehicles in Malaysia to drop by 8.1 percent this year to
501,500 units due to the economic slowdown and limited new model launches.

The firm's partner and head of the automotive and transportation practice
for Asia Pacific, Kavan Mukhtyar, said that sale of passenger vehicles or total
industry volume will drop by 6.8 percent as consumers will be more cautious in
taking up new loans.

"The commercial vehicle segment will see the biggest drop by 20.9 percent as
many companies are freezing their new asset purchases," he said.

This is due to weakening consumer spending owing to the global economic
slowdown, a lack of new mass market car models and a marginal increase in
unemployement rates.

Mukhtyar expects vehicles sales in 2008 to end 12 percent higher at 545,440
units, which is 4.7 percent higher than its earlier forecast of 521,200 units.

"The higher sales in 2008 are attributed to new model launches and car
sales momentum from 2007," he said.
-- BERNAMA