Sales of imported cars in S. Korea drop 19.9 pct in Feb.

SEOUL, March 4 (Yonhap) -- Sales of imported cars dropped 19.9 percent last month
as the South Korean economy was hit by weaker consumption and tight credit,
industry data showed Wednesday.
Import sales totaled 3,663 units in February, compared with 4,572 units sold for
the same period last year, according to the Korea Automobile Importers and
Distributors Association.
"New-car registration in February declined due to a persistent contraction in
consumer spending," said Yoon Dae-sung, the association's senior vice president.
February was a brutal month for Japanese automakers, which were forced to raise
prices in South Korea due to the Japanese currency's strength against the South
Korean won.
A stronger yen makes Japanese vehicles more expensive in South Korea and reduces
the value of won-denominated profits when converted back into yen.
Japan's Honda Motor Co., the most popular brand in South Korea last month,
plunged to seventh place in the February sales ranking.
Honda hiked its vehicle prices in South Korea by an average 13.85 percent this
week, the second increase so far this year.
Officials at Honda's Korean unit weren't immediately available for comment.
Germany's BMW AG topped sales for February with 606 units sold, followed by Audi
with 495 units and Mercedes-Benz with 487 units.
Honda sold 228 units last month, compared with 666 units sold in January.
The industry association anticipates that sales of imported cars in South Korea
will drop 17.3 percent this year amid sluggish demand.
South Koreans are expected to buy 51,000 imported vehicles this year, compared
with 61,648 units sold last year, the association said earlier.
(END)