* Last 5 years (1998 - 2004)

- Vehicle sales in the region rose by 6.12M units, over 4 times of Europe and over 3 times of N.A.
- Total vehicle sales in 2004 is at 17.07M unit (a rose of  7.5% from 2003

* In 2005

-  Expected growth of 6.9%  (1.17M units)
- China is still the main contributor (~36%) to the  strong  growth at around 11% (over 97% is locally assembled vehicles)
- ASEAN countries (~12%) also have an impressive growth at around 14%
- Japan, still one of the main contributor to vehicle sales (~36%) but with a more stagnant growth at 1.3%
- India, moderate growth at 6.8% but still a small player (~9%) comparing to Japan and China

Vehicle sales by key country (K units)

* ASEAN countries

* Indonesia

-  Progressive improvement in politic and economy are the main factors boosting consumer confidence
- High growth expected at an average of over 9% till  2010
- Light Commercial Vehicle continue to dominate the sales at the ratio of 70.23 versus passenger car

* Malaysia

-  Moderate growth expected at an average of 7%  till  2010
- Part of AFTA agreement, tax environment becomes more liberal and improving in affordability of cars
- Passenger car continue to dominate the sales at the ratio of 74:25 versus Light Commercial Vehicles

* Philippines

- Used vehicle imports will decline because of import restriction imposed by the government, boosting new vehicle sales
- High growth expected at and average of 19%  till 2010
- Progressive switch of passenger car sales from 40% to 50%by 2010

* Thailand

- Moderate growth expected at an average of 7% till 2010
- May see the slowdown in medium sedan over small sedan
- Pick – up and SUVs continue to dominate the sales at ratio of 62:35 passenger car

* Japan

- Annual vehicle sales will surpass 6M units mark in 2006
- Economic fundamentals is expected to be strong, leads to rising incomes, increases  consumer confidence, and consequently consumer spending
- Predominantly passenger car market at around 82% of vehicle sales (16% Light Commercial and 2% Heavy Commercial vehicles)
- The demand for replacement lf heavy truck will remain high:
­ Stricter regulation led by Tokyo and adopting by other cities to control emissions, emission legislation will be enforced in 2008
­ Strong growth in industrial production and exports
- Modest growth is expected in both passenger car sector and commercial vehicle sector at an average of less than 2% till 2010

Vehicles sales by key country (K units)

* China

- China will be come the largest market (above 6M units mark) by 2006, surpassing Japan
- Fuel Efficiency Standards for cars targeting to reduce fuel consumption of new cars, starting from 5% in 2005 and 10% in 2008
- High growth expected at an average of over 8% till 2010
- Passenger car is less significant for the sales, at the ratio of 55:37:8  versus Light Commercial and Heavy Commercial vehicle respectively
- A more balanced segment profile , e.g. small, medium, luxury car but medium term small car is expected to lead the growth in passenger vehicle sector
- Imposition lf strict restriction on overloading will help boosting the truck sales in coming years
- Healthy and strong growth will be supported by:
­ Solid economic fundamentals and rising incomes, especially in other large cities
­ Continue improvement and expansion of road networks
­ More accessibility lf credit availability from most OEMs
­ Intense competition leads to continuous improvement of affordability with new car models

* India

- Growth is still dominated by small cars, unlike China, a more balanced segment profile will gradually improved in long term
- Already in 2004, India has become the 3rd largest market after China and Japan
- High growth expected at an average of 15% till 2010
- Passenger car is still dominated the sales, at the ratio of 65:26:9 versus Light Commercial and Heavy Commercial vehicle respectively

Vehicle sales by key country (K units)

* Others

* Korea

- Growth is still dominated by small cars, unlike China, a more balanced segment profile will gradually improved in long term
­ Registered sharp decline by ~17% in 2003 and 2004 ~ 2% 1st half of 2005
­ Expecting a rebound from 2nd half of 2005 onward, with the support of removal of resections of diesel sedans, increases the competitiveness and variety of choices in the fuel efficiency domain
­ Modest growth is expected at 5% till 2010
- Taiwan
­ One of the mature market, modest growth is expected at 5% till 2010
- Australia
­ Economic fundamentals is strong and continue to be strong supporting by failing vehicle prices from intense competition from imported vehicle i.e. FTA with Thailand allows for highly competitive prices.
­ Modest growth is expected at 3% till 2010