There is more bad news for national carmaker Proton - its market share continues to slide and it is now down to 41 percent with 166,118 units sold last year.

According to figures released today, Proton, despite still being a market leader, has its market share slashed by three percent from last year. It recorded a high of 67 percent in 1999.

However, second national carmaker Perodua, which logged sales of 134,170 units, has increased its market share marginally to 33 percent from 30 percent previously.

Non-national cars sales rose 22 percent last year to 87,857, led by Japanese carmakers Toyota, Honda and Nissan.

The Malaysian Automotive Association (MAA) said that Malaysia's motor vehicle sales rose 13 percent to 551,042 vehicles in 2005 - the second largest market in Southeast Asia - but slower growth is forecast this year.

It predicted a growth of three percent in 2006 to 565,000 units.

Projected growth

Aishah Ahmad, MAA president said the projected growth takes into consideration rising interest rates, as well as more stringent approval of hire-purchase loans and shorter repayment periods.

Other factors include high oil prices, modest GDP growth of 5.5 percent in 2006 and higher prices of Multi Purpose Vehicles (MPVs) and four-wheel vehicles due to higher excise duty in 2005, she added.

"Considering these factors, and expected innovative sales by our members, MAA forecasts that market volume will increase by a modest three percent to 565,000 units in 2006," she said in a statement.

Aishah said MAA was forecasting a total of 413,000 cars to be sold in 2006, compared to the 400,835 sold in 2005.

Total sales for commercial vehicles are expected to come in at 114,000 vehicles from 112,531 and total four-wheel drives sales are expected to stand at 38,000 vehicles from 37,679 units.