S. Korea`s March auto sales drop 18.7 pct

SEOUL, April 1 (Yonhap) -- South Korean automakers reported an 18.7 percent drop
in sales for March as the global economic crisis wilted demand for their
vehicles, according to the companies Wednesday.
The results also suggest that domestic sales may have reached a bottom, however,
as on-month sales rose for the second consecutive month, some analysts say.
Overall, the nation's five automakers, led by Hyundai Motor Co. and its affiliate
Kia Motors Corp., sold a combined 402,563 vehicles last month, compared with
495,379 units sold for the same period a year earlier.
Domestic auto sales for March, however, gained 8.5 percent from a month ago to
87,405 units, marking the second straight monthly increase.
In a move aimed at further bolstering sales, the government will offer a
70-percent cut in both purchase and registration taxes for consumers who buy a
new car to replace an older one from May.
Last month, Hyundai saw its vehicle sales fall 9.8 percent to 233,443 units.
In the first three months of this year, Hyundai's sales dropped 13.5 percent to
616,325 units, the company said.
Kia's sales declined 7.9 percent to 111,542 units, with domestic sales rising 6.1
percent to 30,043 units, while exports declined 12.2 percent to 81,499 units.
GM Daewoo Auto & Technology Co., the local unit of General Motors Corp., said
sales plunged 48.5 percent to 44,957 units.
The company, which has idled its production lines since December last year, will
shut down its lines for as many as 10 days in April to control rising inventories
of unsold vehicles.
Renault Samsung Motor Co., the South Korean unit of French automaker Renault SA,
also suffered a 44.8 percent plunge in sales for March. The company sold 10,163
vehicles last month.
Ssangyong Motor Co., which entered court receivership in February under a weight
of debt and record losses, said sales plunged 75.7 percent to 2,458 units.
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