German auto industry sees 2003 new sales up 2 pct

FRANKFURT, Oct 24 (Reuters) - Germany's auto industry association VDA said on Thursday it expected new car sales to grow two percent in 2003 and stuck to its 2002 forecast of a 3.3 percent decline despite consumer uncertainty.

VDA said plans to increase tax rates on company cars would prevent the market growing faster next year.

It is predicting new car sales of 3.23 million in 2002, down from 3.34 million in 2001.