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ASEAN Vehicle Sales to Double by 2005? Asks just-auto.com

3 October 2000

ASEAN Vehicle Sales to Double by 2005? Asks just-auto.com

    LONDON, Oct. 3 Research undertaken by the Economist
intelligence Unit (EIU) and carried on the just-auto.com website concludes
that the ASEAN countries of southeast Asia are set to see a boom in vehicle
sales.  By 2005, vehicle sales are forecast to double over the 1999 level.
Read the EIU research findings at:
http://www.just-auto.com/features_detail.asp?art=292
    The ASEAN automotive sector is clearly bouncing back from the devastating
economic crisis of 1997/1998 which crippled the region's automotive industry,
according to the EIU's full report, "The automotive industries of
Asia-Pacific: prospects for ASEAN and the emerging markets to 2005."
    Recovery is, however, coming off a low base.  After falling by 63% in 1998
to a third of peak 1996 levels, new vehicle sales in the ASEAN region
recovered strongly in 1999 -- up by 49%.  The EIU predicts the recovery will
continue, albeit at a slower pace, but warns that there are still a number of
economic and political barriers to overcome before stability is ensured.
    Progress has not been evenly spread, with recovery still very tentative in
some key markets.  Malaysia and Thailand have so far experienced the most
robust recovery among the region's developing markets, with replacement demand
in Singapore also benefiting from a strengthening economy.
    just-auto.com's Managing Editor, David Leggett, commented: "The Asian auto
industry has been through great turmoil in recent years and is not out of the
woods yet.  However, it does appear that demand conditions will continue to
improve and that at least is good news."

    Read the EIU analysis of the ASEAN vehicle markets at:
http://www.just-auto.com/features_detail.asp?art=292

    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.