New vehicle sales in the Asia-
Sales in China have continued to rise this year despite a sales tax increase on small cars at the beginning of the year. Economic growth in the country has remained strong, driven by strong manufacturing, consumer spending and investment growth. We expect the vehicle market to grow by just under 4% this year, but a further tax increase next year is expected to slow overall demand.
After strong growth in 2016, the Indian vehicle market has expanded at a slower rate so far this year, reflecting more moderate economic growth and the disruption to the economy caused by demonetisation. Full-
Vehicle sales and forecasts* in Asia, 2014-
Sales in Japan have rebounded strongly this year, helped by higher than expected economic growth in the country and buoyant consumer sentiment. Full-
Vehicle sales in South Korea have remained at near record levels so far this year, with market sentiment seemingly unaffected by military activity across the border and by high levels of consumer debt. Interest rates remain at historically-
The Thai vehicle market finally looks to be recovering after four years of sharp declines, with sales forecast to rise by over 7% this year. Full-
Strong economic growth and low interest rates continue to drive the Philippine market higher, with sales forecast to rise by over 7% this year, while the Vietnamese market has struggled to make further progress this year after four years of strong growth.
Asia Motor Business expects vehicle sales in the region to drift slightly lower in 2018, mainly due to lower forecast sales in China as market stimulus continues to be removed. But this outcome is far from certain. Japan and most markets in South-
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