Temporary Slowdown in Growth of Asian Car Markets Expected

02/01/96

The Nikkei reported that the growth rate of automobile sales in major non-Japanese, Asian car markets is expected to drop below 10% this year. Japanese experts expect the decline will be temporary and that the market will rebound as countries build roads and make other improvements in infrastructure. Currently 7 out of 12 million car sales in Asia occur in Japan, although experts belief that other markets will surpass the Japanese one by the year 2,000.

This year's automarkets in Indonesia, Malaysia and South Korea are not expected to grow any. Last year the South Korean market fell for the first time in 14 years. The Taiwanese auto market appears sluggish, and the Chinese market is expected to grow in line with the growth of China's 1996 GDP.

Paul Dever -- The Auto Channel