Sales Of Cars In Asia To Fall Next Year

Analysts at data research company autopolis are predicting a fall in sales of cars in Asia in 2001. Despite the recovery over the past two years, with car sales rising 23%, autopolis says “the big bounce-back is over.” The rate of decline will vary from country to country and indeed, countries such as China and Malaysia can still expect growth.

Other predictions include a fall in sales in Japan, a slight drop in India and stagnation in Taiwan and much of South East Asia, but the biggest fall will come in South Korea. High levels of debt and a sinking stock market will lead a slow down in exports and a fall off in consumer confidence and thus car sales, says the report. Reasons for the predicted fall in vehicle sales include a planned slowdown in the USA and the high level of oil prices.

Overall in Asia, the market is expected to drop by 3% next year and remain flat during 2002. The market will remain “volatile” for some time, says autopolis..