South Korean automakers’ sales fell 35% last month despite hopes a weaker won and growing demand for smaller cars would help them weather the current economic storm.
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“The January figures are worse than expected, confirming expectations that their car sales may fall by double-digit rates in the first quarter,” Dongbu Securities autos analyst Yun Tae-sik told Reuters. “Nothing, even a softer won and smaller cars, can reverse the current global slump.”
Hyundai Motor car sales fell 26.7% while affiliate Kia Motors saw January sales slump 37.9%.
The five South Korean five automakers together sold 312,725 vehicles in January, down from 479,004 a year earlier. Overseas sales, which account for a tenth of all South Korean exports, dropped 37.4%, Reuters said.
Fifth-ranked Ssangyong Motor, which filed for court receivership last month, and stopped production completely for some days, sold just 1,644 vehicles, down 82% from a year ago.
Ssangyong production resumed on Monday, the company said.
