South Korea's five automakers, led by market leader Hyundai Motor Co., reported
an 11 percent on-year sales increase in March, fueled mainly by a solid rise in
overseas demand, data showed Monday.
The combined sales of the
carmakers came to 722,212 vehicles last month, compared with 649,747 units sold
a year earlier, according to the data released by the companies.
Domestic shipments dropped nearly 11 percent on-year to a combined 120,175 last
month. Overseas sales, including cars exported from South Korea and vehicles
assembled at foreign plants, reached 602,036 units, up around 16 percent from
516,555 a year earlier.
The country's automakers also include Kia
Motors Corp., GM Korea, Renault Samsung Motors Co. and Ssangyong Motor
Co.
"Sales of the country's top three carmakers moved up last month
compared to a year earlier, but smaller-sized carmakers reported downturns
mainly due to sluggish domestic demand," an industry insider said.
Hyundai, Kia and GM Korea are the country's three largest automotive
companies.
He said weak sales in the domestic market were offset by
solid gains abroad as leading South Korean carmakers make steady inroads
abroad.
"Even domestic sales numbers for giants like Hyundai and Kia
contracted compared to the year before as the slow pace of economic growth hurt
consumption," the source said.
Hyundai and Kia, flagship companies of
Hyundai Motor Group, the world's fifth-largest carmaker, reported global sales
gains of 17.9 percent and 7 percent, respectively, with GM Korea, the local unit
of U.S. auto giant General Motors Co., saying sales jumped 13.6
percent.
Sales for Renault Samsung and Ssangyong were down 42.4
percent and 10.1 percent respectively.
"Despite the Avante compact
becoming the No.1 best-selling car in the country, domestic sales were down
across the board," said a spokesperson for Hyundai.
This view was
echoed by a Kia executive who said that despite the launch of the popular Ray
crossover utility vehicle, the local market remained weak.
GM Korea,
however, said that its customer-oriented after-sales and marketing programs and
popularity of its Spark mini-car and Alpheon luxury sedan allowed the carmaker
to post a 10.3 percent rise in sales in both the local and foreign
markets.
"We expect domestic demand to maintain its growth throughout
2012," said Ankush Arora, the company's vehicle sales vice president.
On exports, Hyundai, Kia, and GM Korea, which makes cars under its Chevrolet
brand, claimed greater overall competitiveness based on quality improvements
contributed to solid market gains last month.
The three carmakers said
the release of new or refreshed models should ensure steady overseas market
gains in the near future.
Local carmakers added more efforts will be
made to maintain tight quality control to win over the confidence of prospective
foreign car buyers as competition from Japan, the United States and Europe is
expected to heat up.
Market watchers and carmakers, meanwhile, said
lingering global economic uncertainty is affecting sales in the industry in
2012, although South Korean companies may be able to expand their presence by
offering affordable and quality cars.
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