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BMI View: Despite low interest rates resulting in cheaper auto loans, high household debt levels will
dampen passenger vehicle sales. A relatively strong Japanese yen will favour Korean export;, however, we
believe the slowdown in China will continue to place downwards pressure of domestic production levels.
? Low interest rates will make access to vehicle finance cheaper and will support total vehicle sales.
? Government has announced stricter emissions regulations for 2017.
? Slow uptick in construction industry growth due to the hosting of the 2018 Winter Olympics will provide
a slight boost to commercial vehicle sales.
? Slowdown in China will drag on exports and total vehicle sales.