Reuters reports that South Korean carmakers, led by Hyundai Motor Co., have reported an 18 percent rise in June sales from a year ago. The domestic market is being boosted by new models and exports are also maintaining momentum.
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The sales outlook for the industry, which accounts for a tenth of the country’s exports, was further brightened by a fall in the won currency.
“New model launches are helping to stimulate long-delayed replacement demand for automobiles,” said Kim Hak-joo, auto analyst at Samsung Securities, quoted by Reuters.
“Local auto sales had been exceptionally low and new model launches are starting to show some effect and revive optimism over a consumption recovery,” Kim said.
Exports by the country’s five auto makers, which have held up well in recent months, saw a 20 percent rise to a combined 369,853 units in June from a year earlier.
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By GlobalDataOffering tentative signs of a long-awaited recovery in domestic consumer demand, local sales rose 9.8 percent to 100,501 vehicles. Overall car sales last month rose to 470,354, up from 399,861 a year ago, the Reuters report added.
Meanwhile, Renault-Nissan’s Carlos Ghosn said that he plans to further develop business in Korea as he is optimistic about the Asian market, the Korea Herald reported.
“I am very bullish on the Korean market,” Ghosn told Korean reporters at his headquarters in Paris.
“Asia, mostly countries like China, India, Japan, Korea and Thailand, is the booming economy of this century. Not only their internal markets but also their exports are going to be very strong, especially in Korea,” he said.
The head of the Renault-Nissan Alliance added that Korea has great potential in terms of introducing new products and business initiatives.
“I feel that Koreans like commitment. But I want to be very prudent,” said the CEO while adding that he will disclose specific plans in November when he is scheduled to visit Korea, the report added.
