Tax cuts help auto sales in S. Korea climb 15.4 pct in May

SEOUL, June 1 (Yonhap) -- Auto sales in South Korea rose 15.4 percent in May from
a year earlier, thanks to government tax cuts intended to spur demand, according
to data released by carmakers Monday.
Local car sales totaled 123,786 units last month, compared with 107,234 units in
the same period last year. Compared with a month ago, sales jumped 31.9 percent,
the data showed.
Starting May, the government lowered purchasing and registration taxes by 70
percent for people who buy new cars to replace their old ones.
Including exports, overall sales for the nation's five carmakers, led by Hyundai
Motor Co. and its affiliate Kia Motors Corp., fell 10 percent to 434,877 units,
hit by weak shipments to the United States, Europe and other countries.
Hyundai saw its vehicle sales fall 0.4 percent to 250,441 units in May, with
exports declining 4.8 percent to 186,723 units, while domestic sales rose 15.4
percent to 63,718 units.
Kia said sales declined 0.5 percent to 122,163 units last month. Exports fell
12.8 percent to 84,061 units, but domestic sales jumped 44 percent to 38,102
units.
Three smaller rivals suffered sharper-than-expected falls in May sales.
GM Daewoo Auto & Technology Co., the South Korean unit of U.S. automaker General
Motors Corp., sold 44,014 units last month, down 48.9 percent from a year ago.
Renault Samsung Motors Co., the South Korean unit of French automaker Renault SA,
said sales fell 12.8 percent to 15,391 units.
Ssangyong Motor Co., which has been under bankruptcy protection since February,
said sales plunged 60 percent to 2,868 units.
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