South Korean manufacturers sold a record number of cars in 2002, the Korea Automobile Manufacturers Association said on Friday, according to Reuters, which added that analysts said the outlook this year was dimmer.
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The Reuters report, citing KAMA figures, said domestic sales and exports rose 6.1% to 3.13 million vehicles last year while local car sales rose 11.8% from a year earlier to 1.62 million vehicles, as government tax breaks on cars purchases lured more customers into showrooms.
The tax breaks are no longer in effect and with the government taking steps to rein in galloping consumer debt, the prospects for domestic sales in 2003 were not as bright, analysts told Reuters.
“The US economy is not getting any better, while domestic consumption is slowing,” said Dongbu Securities analyst Cho Soo-hong told Reuters, which noted that the South Korean government projects 2003 economic growth at around 5% compared with around 6% last year.
According to Reuters, KAMA said local sales of Hyundai’s new EF Sonata and other passenger cars in 2002 rose 15% from a year ago to 1.23 million vehicles.
Domestic sales of Hyundai’s Santa Fe, Kia’s Sorento and other sports utility vehicles (SUVs) rose 58% over the same period to almost 300,000 units, the Reuters report added.
According to Reuters, KAMA said sales of large-sized vehicles rose 24.5% over the same period to 112,330 units, while sales of subcompacts, such as GM Daewoo’s Matiz, fell 30.4% to 57,178 units.
In contrast, car exports in 2002 rose just 0.6% from a year ago to 1.51 million units, the association said, according to Reuters. Hyundai saw 2002 exports rise 15.9% from a year ago to 928,068 vehicles, while exports from affiliate Kia, South Korea’s second-largest car maker, fell 4.9% from a year earlier to 442,425 units.
Exports by third-ranked GM Daewoo Auto & Technology Co dropped 42.6% over the same period to 126,516 due to its restructuring prior to the completion of a takeover of key assets by General Motors, the report said.
