Conglomerate Sime Darby Bhd announced it has been awarded the exclusive franchise rights to sell Alfa Romeo cars in Malaysia by Italy's Fiat Auto SpA.

In a statement, Sime Darby said its wholly-owned subsidiary, Sime Cerah Sdn Bhd, has signed a franchise agreement with Fiat and is expected to commence operations in the first quarter next year.

"Securing the exclusive franchise rights for Alfa Romeo is part of the Sime Darby Group's strategy of expanding its portfolio of marques in Malaysia," it said.

Sime Darby also distributes BMW and Ford cars among others.

Malaysia, one of the top passenger car markets in the region, is expected to liberalise its auto industry next year under the Association of Southeast Asian Nations (Asean) Free Trade Area (Afta).

Import tariffs for most vehicles in the region have been cut to below five percent in the past year under Afta but Malaysia obtained a two-year reprieve for its auto sector until 2005 and has said it would defer reducing duties to the required level until 2008.