The Korea Automobile Manufacturers Association (KAMA) has forecast that car sales in South Korea will decline by 8% in 2009.
KAMA said it expected new car sales next year to reach 1.1m units compared with 1.2m this year.
“The local auto industry has recently been facing a sharp slowdown in sales as the global economic downturn dampens the economy,” KAMA said in a statement.
Carmakers have responded to lower demand at home and abroad by reducing production and raising incentives in South Korea.