Automotive Industry Outlook for 1999: Key Developments and Trends

Strategic Insights -

The automotive industry in Asia and beyond was characterized by significant developments in 1998, setting the stage for a promising 1999. Mazda Motor Corp. forecasted a 9.4% rise in domestic car sales, while Nissan Motor Co. expected a 4.7% increase. Meanwhile, General Motors Corp. aimed to strengthen its commercial-vehicle operations through a tie-up with Isuzu Motors Ltd.

Key Takeaways:

  • Mazda Motor Corp. predicted a 9.4% rise in domestic car sales in 1999, driven by strong demand for remodeled Familia and Roadster cars, as well as a new sports-utility vehicle.
  • Nissan Motor Co. forecasted a 4.7% increase in domestic sales, with exports dropping 13.6% due to an anticipated economic slowdown in Europe.
  • General Motors Corp. aimed to strengthen its commercial-vehicle operations through a tie-up with Isuzu Motors Ltd., with the two companies announcing plans to develop trucks and other commercial vehicles together.
  • Asia Star-Benz Co., Ltd. reported brisk sales in China, with over 200 Benzs and 9,000 Asia Stars ordered at its 1999 order-placing meeting.
  • Hyundai Motor Co. announced plans to export 200 units of its large car "Grandeur XG" to western European and Middle East countries, marking the first shipments of large cars developed by a South Korean carmaker to foreign countries.
  • Chiyoda Corp secured orders worth over 10 billion yen (US$86.13 million) to build production facilities in Thailand, Poland, and India for General Motors Corp group firms.
  • Hyundai Group stepped up automotive operations following its takeover of Kia Motors Corp. and Asia Motor, with the auto division soon organizing a planning and coordination office to assume overall responsibility for the management of Hyundai, Kia, and Asia.

Statistics:

  • Mazda Motor Corp. forecasted 350,000 units of domestic car sales in 1999, representing a 9.4% rise from the previous year.
  • Nissan Motor Co. expected 950,000 domestic sales, a 4.7% increase, while exports will drop 13.6% to 610,000 vehicles.
  • General Motors Corp.'s stake in Isuzu Motors Ltd. will increase to 49%, from 37.5%, through a share purchase of 232.5 million shares worth 52.5 billion yen (US$455.7 million).
  • Hyundai Motor Co. will export 200 units of its large car "Grandeur XG" to western European and Middle East countries.
  • Chiyoda Corp secured orders worth over 10 billion yen (US$86.13 million) to build production facilities in Thailand, Poland, and India.

Sources:

  • Asia Pulse via COMTEX (http://www.asiapulse.com)
  • Mazda Motor Corp. (TSE:7261)
  • Nissan Motor Co. (TSE:7201)
  • General Motors Corp.
  • Isuzu Motors Ltd. (TSE:7202)
  • Hyundai Motor Co. (KSE:05380)
  • Chiyoda Corp (TSE:6366)