Auto distributor Edaran Otomobil Nasional Bhd (Eon) expects to sell 80,000 locally built Proton vehicles this year, down 37 percent from 2002 due to increased competition, a report said today.

The expected downturn reflects stiff competition from non-national makes, Eon managing director Adzmi Wahab said in The Star newspaper report.

Eon was previously the sole distributor of Proton cars until Proton set up its own distribution arm Proton Edar.

It is now working with Proton to improve car sales and at the same time is looking to distribute other cars, Adzmi said in the report.

Malaysian car sales fell in the seven months to August as consumers anticipated lower prices from next year when import tariffs will begin to be reduced as part of a market liberalisation programme.

Total Proton sales dropped 10 percent last year to 239,783 and further in the first half of this year. - AFP