Malaysian first-half auto sales fell 12 percent to 220,739 while troubled national carmaker Proton continued to lose market share to rival Perodua, industry figures showed today.

The Malaysian Automotive Association (MAA) said sales in June alone, however, rose to 43,783 from 42,211 a year earlier.

Compared to May, June sales jumped 14.2 percent, helped by the new Perodua Viva model and aggressive marketing, particularly Proton, the MAA said.

For the first half, Proton's share of the market shrank to 21.3 percent from 24 percent in the same period in 2006 while Perodua rose to 34.2 percent from 31.7 percent.

The MAA said it expects sales to pick up in the second half of the year, growing 8.4 percent, to bring the 2007 total to 460,000 - a drop of 6.0 percent rather than the 8.0 percent it had forecast previously.

The revised figures were based on expectations that new car models will stimulate sales, supported by higher disposable incomes following a pay raise for civil servants and the relatively buoyant stock market.