By Hyunjoo Jin and Chang-Ran Kim
SEOUL/TOKYO (Reuters) – Asian automakers, led by outperformer Hyundai Motor, got off to a strong start for 2011 with robust January sales as they gear up for the sector’s broad recovery.
But growth in China and India is seen cooling off, while an uneven recovery in advanced markets such as the United States and Europe remain a concern, analysts say.
“Hyundai posted firm sales despite concerns that its China sales would fall sharply because of the end of tax subsidies… Now the focus is its U.S. sales figures, which will be released overnight,” said Yoon Phil-joong, a Samsung Securities analyst.
“U.S. cars sales are expected to fall from December because of heavy snow and year-end inventory clearance. But the U.S. market should gradually recover this year, albeit not drastically,” Yoon said.
Hyundai and its affiliate Kia Motors, which outperformed their overseas rivals during the economic downturn, are set to report strong sales and earnings this year, driven by improved brand image and quality and new models, analysts said.
JAPAN SALES DROP TAMED
New auto sales in Japan, excluding 660cc minivehicles, fell 21.5 percent in January, declining for the fifth straight month after subsidies to replace older cars expired.
But the pace of decline slowed from 28.3 percent in December and 30.7 percent in November.
An industry official termed the drop as relatively tame, noting that sales volume in January represented a 7.4 percent rise from the same month two years ago.
“In December, sales posted a big drop so we were a bit worried, but the decline was limited to 21.5 percent,” said Michiro Saito, general manager at the Japan Automobile Dealers Association, noting that new and refreshed models such as Toyota Motor Corp‘s Vitz subcompact and Nissan Motor Co’s Serena minivan may have helped.
Saito, however, said it was too early to conclude that Japanese automobile sales had hit a bottom.
“For that, we will have to see a recovery in the real economy,” he said.
Maruti Suzuki, India’s top carmaker, reported a 14.7 percent rise in January car sales — its slowest pace of monthly growth since March as rising interest rates and higher fuel prices crimp demand for automobiles in Asia’s third-largest economy.
Source
@Reuters
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