Analysts from various institutes have pegged the year 2007 as the year which will end the 5-year cycle of record global auto sales worldwide. Scotia Economics says weaker sales in mature markets such as Canada, the United States, Western Europe and Japan will offset momentum in China, India and Latin America next year.
Canada’s Bank of Nova Scotia says Car and light truck sales in Canada are expected to drop 4.3 percent to 1.54 million units in 2007 from 1.61 million in 2006, due partly to the dampening effect of slowing economic growth in the United States. US car sales for 2007 is expected to drop for the first time below 16 million units since 1998.
All agree though, that the Chinese and Indian market will continue to grow. The Chinese market is set to be the number two largest car market in the world in 2010. And in a move that I interpret as similar to Genting’s capital shift to Singapore, certain home-grown companies like Naza have shifted their focus on India. Similiarly, Si Khiong Star, while second fiddle to Cycle & Carriage here in Malaysia is huge in China.
2007 is near, good luck.