World car sales in 2007 expected to slow down
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.
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December 29, 2006 @ 1:24 pm
Good for consumers - more freebies or lower prices or both. Good for environment as well but bad for manufacturers - more competition for small cake!
December 29, 2006 @ 1:28 pm
So “market talk” of car price cut under NAP for year 2007 is likely to happen. Good luck to consumers for year 2007 for at least there is a hope for lower prices for cars!
How about P1, hope there is tie up with VW and local corporate jostling for P1 equity is “non-sense” as far as P1 long term survival is concerned.
December 29, 2006 @ 8:50 pm
hopefully more price drops and joint with anyone I don’t care. G has brains which is the best partner.
December 30, 2006 @ 1:00 am
I have on good authority that the purported involvement of Naza in India was well over exagerated. Just ask around, since the news broke out what has happened since? Also the average income of India indicates that they would require a vehicle that is much cheaper than what Naza can produce (albeit with cheaper labour cost but without economies of scale)
December 30, 2006 @ 8:08 pm
Dont worry, one Indian company is making an RM10,000 car!