Car sales in both Japan and South Korea fell by over 27% and 8.6% respectively last month as the worldwide economic downturn continued to bite.
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“The global auto industry is still at the beginning of a long downside tunnel as all major markets and some big emerging markets are suffering from the credit crunch, rising unemployment and falling asset prices,” Kyobo Securities analyst Song Sang-hoon told Reuters.
Sales in Japan, excluding the 660cc minivehicle segment, fell 27.3% in November, while sales including minivehicles, dropped 18.2% year on year for the fourth month in a row.
Toyota sales, excluding Lexus, fell 27.7%, while Nissan Motor sales slumped 29.5% and Honda was off 21.6%. January-November sales were down 5.3% at below 3.03m, the news agency noted.
India’s top automaker Maruti Suzuki, meanwhile, reported November sales off 24.4%, in a market struggling with high credit costs and a slowing economy.
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By GlobalDataUS November sales are forecast to have tumbled 30% from a year ago, hit by tight credit and a weak economy, the report added.
“The fourth quarter is likely to be pretty doomed for all car makers. However, the problem is the next year and no one is free from the impact of weaker demand and the credit crisis,” Hyundai Securities auto analyst Cho Soo-hong told Reuters.
“We may see a rebound in the second half of the next year if economic stimulus packages take effect, but it is premature to be that optimistic yet.”
South Korea’s five automakers sold 445,111 units in November, down from 486,762 a year ago. Car exports, which account for 10% of all South Korean exports, fell more than 13% in value, the news agency said, citing data from the Ministry of Knowledge and Economy.
Domestic sales, which usually carry higher margins, dropped 27.2% to 74,217 units.
