Auto sales in Malaysia reached an all time high in 2004 but the market share of national carmakers Proton and Perodua dropped sharply, the Malaysian Automotive Association (MAA) said today.

Total auto sales in 2004 amounted to 487,605, up 20 percent from a revised figure of 405,745 for 2003, and are expected to hit half-a-million this year.

The 2004 increase was attributed to the introduction of new models, low interest rates, longer repayment periods and new brands such as Oriental-Hyundai, Hyundai-Berjaya, Cheverolet, Fiat and Ssangyong reporting sales figures for the first time, the MAA said.

Sales of Malaysia's home-grown national cars - Proton and Perodua - captured a 79 percent share of the total passenger car market in 2004, down from 85 percent in 2003.

Proton's share for 2004 was 44 percent against 48 percent in 2003, while Perodua fell to 30 percent from 35 percent.

Growing competition

MAA president Aishah Ahmad said the national car market share could continue to decline given growing competition in the industry.

Malaysia, one of the region's top passenger car markets, cut import duties to 20 percent on Association of Southeast Asian Nation (Asean) cars on under a free trade agreement but it also raised excise duties on all new cars sold in the country to offset an expected fall in revenue.

For 2004, passenger car sales totalled 380,568, compared with 320,524 in 2003, the MAA said, with national cars recording sales of 299,347 compared with 271,710 the previous year.

Aishah Ahmad said auto sales in 2005 are expected to grow 2.5 percent to 500,000 vehicles, with the slower pace reflecting the higher base for comparison in 2004 and an expected increase in new vehicle prices.