Rebounding Again
Domestic auto sales rebounded in July after five months. Exports also turned to growth again from a decline a month earlier.
According to the Ministry of Commerce, Industry and Energy (MOCIE) announced on July 10, domestic sales of automobiles rose 8.1% year on year to 149,914 in the same period. The effects of new car launches and the base effects of last year's cuts in individual consumption tax cuts among others boosted domestic sales.
In particular, in the case of Hyundai Motor, the popularity of large-sized cars such as the Grandeur IG continued, and domestic sales increased 24.5% due to new car effects such as the Kona. Ssangyong Motors’s sales also gained 14.7% due to the launch of the G4 Rexton.
On the other hand, sales of Kia Motors fell 0.9% due to the aging of the K-series and sluggish commercial vehicle sales. GM Korea’s sales fell 24.8% due to intensifying competition between its flagship models, Spark and Malibu and models of other carmakers. Imported car sales grew 12.6% year on year due to robust sales of German and Japanese cars excluding Audi and Volkswagen, the sale of both was suspended.
An increase in small eco-friendly SUV exports helped drive up Korea’s car exports 5.1% to 228,229. Significant increases in exports were chalked up by Hyundai Motor (13.2%) while Renault Samsung (38.1%). Ssangyong Motors (-47.4%), GM Korea (-2.8%) and Kia Motors (-0.8%) recorded minus exports.
Automobile production was up 3.1 percent to 371,344 units, showing strong domestic sales and exports.