Tyres manufacturers have known that the Chinese and Indian car sales have been experiencing continued growth even during the global recession.
Yokohama announced recently that it plans to boost annual passenger tyres production at its plant in China by double due to the strength of the market.
But now the latest figures confirm that passenger car sales for November in the two fastest growing emerging markets, India and China, provided a further sign that momentum in the car industry is shifting to Asia.
China car sales nearly doubled during the month against a year earlier, while in India sales rose 61 per cent on the back of a rebounding economy and a recovery in the car finance market.
China’s market has gone from strength to strength this year, catching car market analysts and industry executives off guard, and making east Asia a bright spot in an industry suffering from the effects of the financial crisis.
Market analysts are expecting continued growth in early 2010, especially if, as expected, Beijing continues with its programme of lowering the taxes on cars.
In India, vehicle sales growth was boosted by a low base effect from a year earlier but was still ahead of expectations, with suppliers unable to match the pace of the growth.