Nissan Middle East has shrugged off rumours over a drop in car prices, and emphasized the importance of Middle East growth potential versus rest of the globe despite the current international financial crisis.

The Nissan Middle East statement followed speculation by some GCC internet bloggers that all car brands would drop the retail prices by 40 per cent or 50 per cent in the region over next three months due to the world financial crisis.

During a recent visit to the GCC by Nissan president and CEO, Carlos Ghosn, it was confirmed that a short-term slowdown in GCC sales could be expected but overall Nissan 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 & 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,” Zeidan added.

He noted the global financial crisis has had a negative impact on the automotive industry in mature markets. The Middle East car market may slow down but will not shrink negatively like other global car markets.

China and the Middle East were the fastest growing auto markets in the world up to the start of the global financial crisis which slowed this growth down.

Experts estimate nearly one million Middle Easterners are employed in automotive related sectors in the Arab world.

Nissan Middle East witnessed 34 per cent growth with 183,000 units sold in 2007 when compared to 2006. Nissan’s current fiscal year ends in March 2009.-TradeArabia News Service