First-quarter sales of automobiles in the Korean domestic market are expected to drop by about 6% from a year ago, industry sources told the Korea Times.
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According to the Korea Automobile Manufacturers Association (KAMA), the lobby group for five Korean automakers, their combined sales in the first three months will stand at some 245,000 units. During the same period last year, they sold 260,095 units, the paper said.
“Business indicators show that consumer sentiment has improved and the Korean economy will pick up, but car sales remain in the doldrums,” a KAMA official told the newspaper. “We expect an increase in the second quarter, when firms will release many new models, such as Kia Motor’s new compact Pride.”
The KAMA official reportedly said Korean firms will adopt more aggressive marketing with better sales promotions to revive domestic demand.
Sales of passenger cars increased by 2.6% from a year ago and sales of trucks rose by 1.3%. The popularity of recreation vehicles has faded with first-quarter sales expected at 78,000 units, about 20% lower than a year ago.
According to the Korea Times, analysts previously anticipated the auto industry would recover from March. In March alone, automakers are expected to sell about 92,000 units, about 2% less than a year ago.
Last year, sales of Hyundai Motor, Kia Motors and three other carmakers dipped by 17% year-on-year to 1.09 million units at home, although their exports grew. Annual car exports surpassed $20 billion for the first time in 2004 as Hyundai and Kia saw their sales of compacts increase in North American and European markets, the newspaper added.
