Trade and Industry Correspondent:THE local car industry has predicted a hold back in new vehicle sales because of recent and predictable interest rates hikes, said the National Association of Automobile Manufacturers of SA (Naamsa) yesterday.

The interest rate hikes look set to put the brakes on the unparalleled boom in the local car market that has seen new vehicle sales soar to record levels.

Naamsa managerial director Nico Vermeulen said it took up to six months to see the full impact of changes in interest rates. The industry expected sales to delay towards the end of this year.