Aug 27, 2007
Asia Pacific projected to surpass Europe in world sales, says J.D. Power
Westlake Village, California – A new study released by J.D. Power and Associates suggests that automotive sales growth in the Asia Pacific region is projected to surpass Europe by 2009, with a net 23 million sales, compared with 22.7 million sales in Europe. The Asia Pacific region is already home to China and Japan, the world’s second- and third-largest vehicle markets; future sales will be bolstered by continued growth in China, plus expected expansion in India, Southeast Asia and Korea.
“Clearly, global sales growth in 2007 and into the future is being driven by strong demand in Asia’s two major developing markets, China and India, while sales in other regions are moderate,” says Jeff Schuster, executive director of forecasting at J.D. Power. “Steadily rising incomes in the Asia Pacific region will make vehicle ownership possible for more consumers in those areas, and we expect China and India to remain the forces that drive future global growth.”
Light-vehicle sales in the Asia Pacific region reached 9.7 million units in the first half of 2007, a 7.2 per cent increase compared with the same period in 2006, the company says. By the end of 2007, sales in the region are projected to reach 19.3 million units, and to account for 28.1 per cent of global demand. By comparison, sales in Europe are expected to grow by 3 per cent to 21.6 million units, while North American sales are expected to decrease by 0.04 per cent, to 19.2 million units. South American sales are projected to increase by 10.6 per cent, to 3.4 million units, while sales throughout the rest of the world are expected to grow by 5 per cent.
The anticipated growth in 2007 is primarily due to a projected sales increase of 18 per cent in China, where automotive sales have experienced compounded annual growth of 25 per cent since the country joined the World Trade Organization in 2001. Sales in Japan are projected to total 5.4 million units in 2007, a 2.7 per cent decrease since 2006, while in India, the region’s third-largest market, sales are expected to reach 1.67 million units in 2007.
At the current pace of growth, J.D. Power expects that China will surpass the United States as the world’s largest new-vehicle market by 2025.