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204751
Thu, 09/01/2011 - 13:42
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https://www.oananews.org//node/204751
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S. Korean auto sales up 14.3 pct in Aug.
SEOUL, Sept. 1 (Yonhap) -- South Korea's five automakers said Thursday their sales increased 14.5 percent on-year in August thanks to solid demand gains at home and abroad.
Their combined sales came to 590,364 units last month, compared with 516,291 vehicles sold a year earlier. Sales in overseas markets gained 17.2 percent on-year to 476,515 units last month while domestic shipments rose 3.7 percent to 113,849 units.
Overseas sales cover cars exported from South Korea and vehicles made in foreign assembly plants, but exclude so-called complete knockdown kits of vehicles that are shipped abroad for assembly at foreign plants.
The five automakers are Hyundai Motor Co., the country's largest automaker; its affiliate Kia Motors Corp.; GM Korea Co., the South Korean unit of the world's leading automaker General Motors; Renault Samsung Motors Co., the local unit of French automaker Renault SA; and Ssangyong Motor Co., an affiliate of the Indian sport utility vehicle maker Mahindra & Mahindra Ltd.
Overall sales numbers for August, however, dipped 5.6 percent from 626,060 units sold in July, mainly due to seasonable factors such as people taking time off for summer vacation. Exports dipped 4.3 percent with domestic sales contracting 10.5 percent.
In the first eight months of the year, the carmakers sold over 4 million vehicles at home and abroad, up 14.1 percent from a year earlier, with exports that grew 16.9 percent on-year pushing up growth.
Industry watchers said solid sales gains in August reflect positive market reactions to new models as well as the overall improvement in quality, style and brand image of South Korean vehicles.
"August sales have done well vis-a-vis 2010 despite the summer vacation season with consumers showing signs of buying new cars in the local market," a Hyundai spokesperson said. He added that overseas sales have been helped by the carmaker's ability to meet needs of specific countries and enhance their brand image.
The carmaker has made cars that can meet needs of specific consumers such as the Solaris subcompact sold in Russia.
Kia added that despite the drop in working days caused by the annual wage negotiations, there has been growing interest in high fuel efficient cars such as the K5 hybrid that is boosting demand.
The country's second-largest carmaker said it sold over 3,800 K5 hybrids in the local market alone since May.
In addition, GM Korea Vice President Ankush Aoroa said better brand recognition has helped sales domestically, while vehicles like the Chevrolet Cruze compact that are made in South Korea for both the local and overseas market have contributed to better numbers overall.
GM Korea and Renault Samsung, which reported their best ever monthly sales in August, said they will redouble their efforts to meet and surpass consumer demand in the coming months.
South Korean carmakers, meanwhile, plan to maintain their strategy of strengthening marketing efforts and seeking broader export markets so they will not be overly dependent on a few countries.
They also said that they are keeping close tabs on future economic developments caused by the downgrading of the sovereign credit rating of the United States and fiscal instability in some European countries that can weaken consumer demand.
Their combined sales came to 590,364 units last month, compared with 516,291 vehicles sold a year earlier. Sales in overseas markets gained 17.2 percent on-year to 476,515 units last month while domestic shipments rose 3.7 percent to 113,849 units.
Overseas sales cover cars exported from South Korea and vehicles made in foreign assembly plants, but exclude so-called complete knockdown kits of vehicles that are shipped abroad for assembly at foreign plants.
The five automakers are Hyundai Motor Co., the country's largest automaker; its affiliate Kia Motors Corp.; GM Korea Co., the South Korean unit of the world's leading automaker General Motors; Renault Samsung Motors Co., the local unit of French automaker Renault SA; and Ssangyong Motor Co., an affiliate of the Indian sport utility vehicle maker Mahindra & Mahindra Ltd.
Overall sales numbers for August, however, dipped 5.6 percent from 626,060 units sold in July, mainly due to seasonable factors such as people taking time off for summer vacation. Exports dipped 4.3 percent with domestic sales contracting 10.5 percent.
In the first eight months of the year, the carmakers sold over 4 million vehicles at home and abroad, up 14.1 percent from a year earlier, with exports that grew 16.9 percent on-year pushing up growth.
Industry watchers said solid sales gains in August reflect positive market reactions to new models as well as the overall improvement in quality, style and brand image of South Korean vehicles.
"August sales have done well vis-a-vis 2010 despite the summer vacation season with consumers showing signs of buying new cars in the local market," a Hyundai spokesperson said. He added that overseas sales have been helped by the carmaker's ability to meet needs of specific countries and enhance their brand image.
The carmaker has made cars that can meet needs of specific consumers such as the Solaris subcompact sold in Russia.
Kia added that despite the drop in working days caused by the annual wage negotiations, there has been growing interest in high fuel efficient cars such as the K5 hybrid that is boosting demand.
The country's second-largest carmaker said it sold over 3,800 K5 hybrids in the local market alone since May.
In addition, GM Korea Vice President Ankush Aoroa said better brand recognition has helped sales domestically, while vehicles like the Chevrolet Cruze compact that are made in South Korea for both the local and overseas market have contributed to better numbers overall.
GM Korea and Renault Samsung, which reported their best ever monthly sales in August, said they will redouble their efforts to meet and surpass consumer demand in the coming months.
South Korean carmakers, meanwhile, plan to maintain their strategy of strengthening marketing efforts and seeking broader export markets so they will not be overly dependent on a few countries.
They also said that they are keeping close tabs on future economic developments caused by the downgrading of the sovereign credit rating of the United States and fiscal instability in some European countries that can weaken consumer demand.
