Asian Auto Industry in Recovery Mode But Not Out of the Woods Yet Says just-auto.com

23 August 2000
Asian Auto Industry in Recovery Mode But Not Out of the Woods Yet Says just-auto.com
    LONDON, Aug. 23 just-auto.com -- Research conducted by
Standard and Poor's and carried on the just-auto.com website concludes that
Asia will account for a growing proportion of global auto industry demand and
production in the future.  In the next decade, vehicle demand in Asia
(excluding Japan) is expected to increase at a compound average annual rate of
8.3% to reach 14.8m units in 2010.  By 2010, we expect Asia (excluding Japan)
to account for 20% of global (excluding Africa and Middle East) demand.
Including Japan, Asia's share of global sales is expected to be 30% in 2010.
    However, the short-term picture remains less buoyant as demand struggles
to recover from the hammer blow it received with the economic crisis of the
late 1990s.  Doubts are beginning to reappear about the sustainability of the
recovery.  On the plus side, economic indicators continue to show improvements
over the corresponding period in 1999.  However, there have been few
meaningful attempts to tackle the question of non-performing loans and the
faster than expected recovery in 1999 has reduced the commitment to structural
reforms.  The region's currencies and stock markets, reflecting worries over
further interest rate increases and a possible slowdown in the US economy have
been weakening in recent months and there is an upward pressure on interest
rates.
    just-auto.com's Managing Editor, David Leggett commented:  "The Asian
economy and auto industry clearly faces challenges ahead.  Nevertheless,
long-term prospects for the region's auto sector are extremely positive."
    To read the full Standard and Poor's assessment of prospects for the Asian
auto industry, please click on the link:
http://just-auto.com/features_detail.asp?art=255&sct=fotw .
    just-auto.com is the premier online portal for automotive industry
professionals worldwide.  Targeted specifically at industry and business
professionals the site provides a single point of reference for independent
automotive industry information.