Prices for all car bands could fall by between 40 and 50 percent during the next three months as a result of the global economic downturn.

Nissan Middle East has shrugged off rumours that car prices will fall this year pointing out that the high appreciation of the Japanese yen made such a move unfeasible, it said on Sunday.The company was responding to comments made by GCC bloggers that suggested prices for all car bands could fall by between 40 and 50 percent during the next three months as a result of the global economic downturn.
During a recent visit to the GCC by Nissan’s president and CEO, Carlos Ghosn, it was confirmed that a short-term slowdown in GCC sales was expected, but overall the company was optimistic about the growth potential in the Middle East. "Talk of car prices dropping dramatically over next three or four months are not true. The high appreciation of the Japanese yen is one factor that makes such price drop speculation unfeasible and unrealistic", said Monal Zeidan, general manager, marketing and corporate communications at Nissan Middle East. "Some in the car trade may use promotions and marketing campaigns but Middle East automotive experts agree no dramatic drop in car prices will follow as speculated by those citing local rumours," added Zeidan.The global financial crisis had had a negative impact on the automotive industry in mature markets but the Middle East’s car market might slow down but would not shrink negatively, he said.Experts estimate nearly one million local people are employed in automotive related sectors in the Arab world. Nissan Middle East witnessed 34 percent growth with 183,000 units sold in 2007 versus 2006. The current fiscal year ends in March 2009.