AFP reports that the fallout from the SARS outbreak in China threatens to deflate the boom in China’s vehicle market, the fastest growing in Asia.
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In Asia, vehicle sales are forecast to be flat this year, with production seen to fall more than two percent as demand for cars and trucks decline in the United States and Europe, according to the Autopolis consulting firm.
The fastest growth in Asia would still be in China, although Autopolis said, “even this could be under threat, with the possibility that SARS could temporarily derail the boom for a while.”
AFP points out that analysts fear the fallout from SARS in China could extend beyond tourist-related industries to disrupt production lines for companies, among them auto firms, which have relocated there because of cheap labour and a huge domestic market.
Graeme Maxton, Autopolis managing director for Asia, said the slowdown will be temporary and that the region outside Japan was on track to be the “fastest growing truck and car market in the world over the next decade.”
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