The Business Times newspaper says that the Malaysian car market is set to slow next year after almost three years of high growth.

The newspaper says that a wave of replacement purchases is coming to an end and that double-digit market growth is unlikely to be seen next year.

MIDF Sisma economist Azrul Azwar told Business Times that, “The reason for the drop in sales is simply because people do not buy cars every day.

“After purchasing a new vehicle, it will take them another three to five years before buying another,” he added.

The newspaper also reported that UBS Warburg, in its market analysis, attributed the projected decline in vehicle purchases next year to uncertainties in both global and local economic outlook.

However, some of the expected drop in car sales next year may also be due to a possible increase in interest rates, a by-product of the country’s relatively upbeat economic performance.