New vehicle sales surged 20 percent in the first half of this year, a trade association said Friday, predicting the positive trend would continue for the rest of the year.

The Malaysian Automotive Association (MAA), which represents distributors, said 219,141 vehicles were sold against 182,222 in the first half of 2001.

MAA president Aishah Ahmad said the improved performance would be enjoyed until year-end, with sales for 2002 expected to be 430,000, up eight percent from the previous year's 396,381.

"With 430,000 vehicle sales, Malaysia will be ahead of Thailand and Indonesia in terms of new vehicles sales for the fourth year in a row," Aishah told reporters.

The MAA said the increased sales could be attributed to low interest rates, the return of consumer confidence and improved marketing strategies. Interest rates for vehicles have plunged to 4.5 percent from a high of 10 percent in 1997.

Aishah said: "Low down payment and low interest rates are encouraging car ownership. Furthermore, we are in the five year cycle, where individuals buy new vehicles to replace their previous ones."

The MAA said passenger car sales in the first half of this year totalled 182,706 units, against 150,557 units a year earlier.

Of the total passenger car sales, locally-manufactured vehicles accounted for 167,492 units against 139,303 units a year earlier, representing a 92 percent share compared to 93 percent a year ago. — AFP