Cars Produced Abroad
Domestic sales and exports of automobiles grew by double digits but overseas sales of cars from overseas factories failed to escape from a slump in September.
According to the Ministry of Trade, Industry and Energy (MOTIE) on October 18, domestic automobile sales in September were up by 20.1% from last year to 154,188.
Korean-made car sales grew 21.0 percent to 133,252 units, while import car sales 14.6 percent to 21,266 units. Domestic car sales were driven up mainly by sales of new cars such as the Grandeur, the Kona, the Stinger and the G4 Rexton while import cars of German and Japanese automakers excluding Audi and Volkswagen enjoyed an increase in sales. A part was played by base effects that sluggish sales of last year make an increase in sales of this year look larger.
Exports grew 45.3% year on year to 226,479 units led by exports of environment-friendly cars and SUVs. Unlike last year production was interrupted due to a strike, Hyundai Motor and Kia Motors both achieved normal production.
Domestic auto production jumped 38.3 percent year on year to 356,749 units due to the base effects from the strike of last year, strong domestic demand and exports. In the first nine months of this year, production (4.4%), domestic demand (1.5%) and exports (5.1%) all inched up from the previous year.
Exports of automobile parts in September slid 6.4% year on year to US$ 1.87 billion due to a decline in exports to North America, China and the EU which stemmed from a decrement in production at Korean automakers’ overseas factories.
The sales of automobiles produced in the overseas factories sank 12.0% year on year to 372,919 units. This is because Hyundai and Kia’s sales were sluggish in major markets such as China and the US.