Domestic sales among South Korea's five main automakers fell by 4.8% to 106,308 units in January, from 111,620 units in the same month of last year, according to data released individually by the vehicle manufacturers.
The data does not include sales by South Korea's low-volume commercial vehicle manufacturers, including Tata-Daewoo and Daewoo Bus Corporation, which typically account for up to 2% of the domestic market combined.
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Also not included are sales of imported vehicles, which accounted for close to 15% of the total vehicle market in South Korea last year.
Last month's market decline represents a sharp reversal from the strong growth seen in the fourth quarter of last year and reflects more than anything the year-end expiry of government incentives. The consumption tax rate, discounted to 3.5% last August, returned to 5% at the end of 2015.
While it was inevitable that buyers would bring purchases forward to take advantage of the lower tax rate, consumers continue to benefit from historically-low benchmark interest rates of 1.5% and low fuel costs.
Global sales among the country's 'big-five' automakers declined by 12.8% to 626,315 units in January, from 718,030 units in the same month of last year, reflecting also a sharp drop in overseas sales – of 14.2% to 520,007 units.
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By GlobalDataAutomotive sector exports by value fell by over 21% last month, reflecting weak demand in key overseas markets such the Middle East, China and South America, as economic uncertainty increased.
South Korean carmakers: domestic/overseas sales by brand, January 2016
(Sources : www.AsiaMotorBusiness.com, industry sources)
Hyundai Motor's global sales fell by 12.4% to 338,035 units in January, from 385,868 units a year earlier, reflecting mainly weak overseas sales as the company struggled in key domestic markets.
Hyundai's domestic sales fell by just 1% to 49,852 units in January from 50,413 units a year earlier, with strong demand for the new Avante sub-compact car and SUVs Tucson and Santa Fe helping the brand to outperform.
Overseas sales fell by over 14% to 288,183 units last month, from 335,455 a year earlier, reflecting weakening demand in the Middle-east, Russia, China and some key South American markets.
Kia Motors' global sales plunged by over 15% to 213,980 units in January, from 252,851 units a year earlier, reflecting also a sharp decline in overseas sales.
Domestic sales by rose by 4.6% to 38,505 units, 36,802 units a year earlier, helped by strong demand for the Sportage and Sorento SUVs and the newly launched K5 sedan.
Overseas sales fell by almost 19% to 175,475 units, from 215,972 units a year earlier, reflecting weakening demand in the Middle East and Africa and some key Latin American markets.
GM Korea reported a 4.6% drop in global sales to 49,194 units in January, from 51,585 units a year earlier, reflecting a sharp decline in its domestic sales. The data does not include exports of CKD kits for assembly overseas.
Domestic sales plunged by almost 22% to 9,279 units, from 11,849 units a year earlier, reflecting weaker overall domestic demand and rising competition from new models from Hyundai and Kia in particular.
The company said it would step up the introduction of new and revised models this year in an attempt to reverse the decline.
Overseas shipments were slightly higher at 39,915 units, from 39,736 units a year earlier.
Renault-Samsung's global sales dropped by over 10% to 15,024 units in January, from 16,784 units a year earlier, reflecting sharply weaker domestic sales.
Domestic sales were more than 63% lower at 2,101 units, from 5,739 units in the same month of last year on weaker overall market demand and stronger competition from Hyundai-Kia.
Overseas sales jumped by 17% to 12,923 units, from 11,045 units a year earlier.
SsangYong Motor, owned by India's Mahindra & Mahindra, reported a 2.3% drop in factory sales in South Korea in January to 10,082 units, from 10,321 units a year earlier, due to weak domestic demand. The data does not include exports of CKD kits for assembly overseas.
Domestic sales fell by 3.6% to 6,571 units from 6,817 units a year earlier, while exports were slightly higher at 3,511 units, compared with 3,504 units previously.
