Inside The Mind Of An Automotive Geek

According to a recent study conducted by J.D. Power and Associates, the Asia Pacific region's auto market will be growing considerably in the near future that it will become the largest market in the world before the turn of the decade. According to the report from J.D. Power and Associates, the Asia Pacific Region's car sales will eclipse that of Europe by 2009.

By that time, it is estimated that 23 million cars and light trucks will be sold in the region compared to the 22.7 million sales prediction for Europe. Surprised? If you have been following news in the auto industry lately, I'm sure you will not be surprised with this prediction.

The Asia Pacific region, if you're not aware is where the second and the third largest auto markets are found. China is the second largest and it is still growing and Japan is the third although it is showing some signs of slowing down. But the growth of the Chinese auto market is enough to offset the decline of the Japanese auto market as this study shows. Aside from these two countries, other markets in the region is still developing and is yet to reach their peak, late bloomers you can call them.

India's auto market is booming as evidenced by the hordes of automakers expanding their operation in the said country. Nissan, General Motors. Ford, Volkswagen, Toyota, they are all taking stocks in the growing Indian auto market. Aside from that country, the Southeast Asian nations are also becoming a solid market for automakers. Malaysia, Indonesia, and the Philippines may be minor markets but combined, they give automakers a place where they can market their cars as well as low-cost production areas. Korea, the home of Kia and Hyundai is also a growing market that is yet to reach its peak even with two world renowned automakers based in the country. Malaysia may be showing signs of slowing down too just like Japan but with the upcoming deal between Proton and Volkswagen, it will be a good production base for the European automaker.

Jeff Schuster, executive director of forecasting at J.D. said: "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. 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."