Suzuki sees global car sales up 7% in 2008
Reuters
January 24, 06:01 CET
TOKYO (Reuters) -- Japan's Suzuki Motor Corp, a maker of compact cars, said today it expects its global car sales to rise 7 percent this year as robust demand for fuel-efficient vehicles in emerging markets will likely offset the fallout from U.S. subprime problems.
CEO Osamu Suzuki brushed aside any impact from rival Tata Motors Ltd's low-cost compact Nano car, unveiled earlier this year and carrying a dealer's price of $2,500.
He said Suzuki is in no rush to try to match the top Indian carmaker's new product as concerns about its safety and environmental impact still remain.
Suzuki has been growing rapidly as its line-up of comparatively low-cost, fuel-efficient cars drives sales in India, Eastern Europe and other emerging markets.
Suzuki's pole position in India through local unit Maruti Suzuki India has been the backbone for its rapid growth.
CEO Suzuki told a news conference he expects robust growth in Asian markets such as India and China to continue to benefit the company, but a slowing in the global economy stemming from the U.S. subprime problems and high oil prices poses concerns.
"I don't expect demand for cars will expand this year, while we have worries about the United States, currency moves, a decline in overall consumption and high oil prices," he said.
For 2008, Suzuki forecasts a 13 percent increase in sales in China at 191,000 units and a 7 percent rise in West Asia, including India, at 904,000 units.
Sales in North America is expected to grow 7 percent this year to 122,000 units and Japan to remain at 676,000 units.
Globally, Suzuki expects to sell 2.55 million vehicles in 2008, while it expects motorcycle sales to increase 11 percent to 3.6 million bikes.
Shares of Suzuki were up 1.8 percent at 2,580 yen as of 0439 GMT, almost in line with the benchmark Nikkei average.
