Triple Plunges
Korea’s productions, domestic demands and outbound shipments of cars decreased 7.6 percent, 6.8 percent and 18.8 percent, respectively, in January compared to the same period a year earlier.
According to the data from the Ministry of Trade, Industry and Energy on February 10, Korea’s productions, domestic demands and exports of cars fell at the same time in January as consumers bought products in advance due to the government’s plan to end the reduction of individual consumption taxes in December last year, and auto exports plummeted due to a slump in emerging economies.
The country produced 347,375 vehicles in January, down 7.6 percent year-on-year, due to the decrease in both domestic demands and exports and Kia Motors’ partial strikes. As consumers bought cars before the end of the individual consumption tax cuts in December last year, domestic demands of both domestic and foreign cars rapidly dropped by 38.5 percent on-year with sales of 123,379 units, showing a 6.8 percent decrease from the same month a year ago. Sales of foreign cars fell by 14.7 percent in four years after December in 2011.
Exports of vehicles came to 201,967 units last month, down 18.8 percent from 248,613 units tallied a year earlier, as fast-falling oil and raw material prices dragged down demand from emerging markets, including Middle Eastern countries and Latin American countries. By region, shipments to the Middle East and Latin America region slumped 71.1 percent and 48 percent year-on-year last month, while shipments to countries in EU and the U.S. slid 8.5 percent and 3.1 percent over the cited period. The January figure marked the sharpest year-on-year drop in seven years since October 2009, when it posted a 22.1 percent dive in the aftermath of the 2008 global financial crisis.
Exports of automobile components stood at US$1.86 billion (2.23 trillion won), seeing a 13.6 percent drop from a year ago, due to the decrease in overseas productions and sales of Korean automakers.