Domestic automakers are increasingly relying on Asia for their growth amid dimming prospects for the Japanese and North American markets. The home market appears likely to remain in a long slump due in part to the shrinking population, while the North American market, the backbone of Japanese auto sales, is losing steam amid growing signs of an economic downturn.

The strength of the Asian market may force automakers to veer from their existing strategies in which they concentrate most of the operating functions at their Japanese headquarters, with each company working to shift development work to local markets, for instance.

Data compiled by Nikkei Inc. shows that combined domestic sales by eight Japanese automakers shrank 6% year on year to 4.94 million units in 2007, sharply contrasting with the 14% rise to 4.8 million units in Asia, including China and Pacific nations, over the same period.

Toyota has increased its 2008 sales forecast for China, India and other Asian markets by 16% to 1.87 million units. Honda is projected 17% growth to 910,000 units and Suzuki is expecting a 10% increase to 1.05 million units.

China has become the primary Asian driver of sales for Japanese automaers.

Toyota expects to increase 2008 sales in China by 40% to 700,000 units in 2008. Honda expects a 14% increase to 490,000 units.

Suzuki, with 50% of the market in India, is targeting 700,000 units for that market in 2008, up 8%.