Malaysia's car sales fell further in August as consumers anticipated lower prices next year through liberalisation under a regional free trade pact, local media reported today.

Sales of passenger cars and commercial vehicles in August sagged 11 percent to 36,522 units from 41,045 a year ago, the Malaysian Automotive Association (MAA) said in a statement.

Sales also fell 4.5 percent compared to July. This marked the seventh month of decline in total sales this year, the New Straits Times reported.

The MAA said it does not expect any improvement in September as consumers will continue to wait for details of the tariff adjustment next year.

Tariffs are due to be slashed under the Association of Southeast Asian Nations (Asean) Free Trade Area (Afta) but Prime Minister Dr Mahathir Mohamad has warned that prices will not drop and urged consumers to buy now.

"The government proposes to levy excise duties on imported cars when import duties are reduced from Jan 1 2004," he said in his budget speech earlier this month.

Foreign car sales surged 39 percent in August year-on-year at the expense of nationally-built cars, Proton and Perodua, which are feeling the heat ahead of market liberalisation. - AFP