The development of emerging consumer nations such as China and marked sales growth in Latin America is expected to deliver global gains in the car market during 2006.

Research from Scotiabank suggests that global sales growth will reach one per cent in 2006, slowing slightly on this year's two per cent rise but contradicting some reports of a marked drop-off in sales.

Sustained double-digit growth in China is one of the key drivers, while India, Mexico and Brazil are all also expected to perform well next year.

The growth in the developing nations is expected to counteract a dip in North American sales, with Western Europe and Japan expected to hover around their current flat levels.

"Going forward, we expect China and Latin America to continue to lead the way," explained Scotiabank automotive specialist Carlos Gomes.

"However, growth will moderate, especially in South America, where gains will ease to a single-digit advance, after surpassing two million units for the first time since the emerging markets crisis of the late 1990s."

China's car sales climbed to 2.7 million units in 2005.


Ÿ Adfero Ltd