Hyundai Motor posted a 9% rise in October sales on Monday, aided by soaring exports to the United States and Europe but weighed down by stagnant domestic demand, Reuters reported.
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The report said Hyundai affiliate Kia and smaller rivals had similar results, as tighter consumer lending hit local sales, but improving global economic conditions boosted offshore demand.
Overall, Reuters said, five car makers posted a 22% rise in sales in October to 406,736 vehicles compared with 333,164 a year ago.
Analysts told Reuters slower domestic sales would continue in the months ahead as surging consumer defaults and tougher financing delayed a long-awaited revival in consumer spending.
Kim Hag-ju, a motor industry analyst at Samsung Securities, told Reuters he did not expect domestic consumption to recover any time soon, but was upbeat on foreign sales, saying: “Declining inventories at overseas plants mean there would be more shipments in the coming months.”
Hyundai reportedly said its sales in October rose to 198,122 vehicles from 181,847 a year earlier.
“We had record monthly sales as a brightening world economic outlook bolstered overseas sales,” Hyundai spokesman Jake Jang told Reuters, adding: “Key markets such as the United States, Europe and China enjoyed good sales.”
Hyundai exported 146,363 vehicles in October, up 28% from 114,179 units a year ago, Reuters said.
Kia reportedly said October sales rose 6.5% from a year earlier to 108,221 vehicles against 101,571.
According to Reuters, Kia said exports during October jumped 28% to 81,421 vehicles from 63,492 a year ago with a better brand image in the North American markets bolstering demand for its new large Opirus model.
GM Daewoo Automotive and Technology said October exports rose to 70,275 vehicles to take total sales to 80,313 from 21,998 a year earlier, Reuters added.
The South Korean unit of Renault SA, Renault-Samsung, posted a 36% drop in October sales to 8,007 units on falling domestic sales, the report said.
Sport utility vehicle maker Ssangyong said its October sales fell 21% to 12,073 vehicles compared to 15,292 a year earlier, Reuters said, noting that Ssangyong sells most of its vehicles at home.
