The Korea Automobile Manufacturers Association (KAMA) has released its Auto Industry Report for 2012. Accordingly, South Korean automobile production for 2012 is expected to increase 3.1 percent year on year to 4.7 million units, hitting a new record.
The report's forecast for the increase in production is due to the anticipated growth of exports. South Korean automobile exports for 2012 are predicted to gain 3.9 percent over a year earlier to 3.2 million units even with factors such as the possible spread of the impact of the financial crisis originating from European countries and diluted price competitiveness due to the strong Korean won.
On the other hand, domestic sales for 2012 are foreseen to gain only 1.4 percent compared to 2011, rising to 1.5 million units, limited by concern over the economic slowdown, weakened new model release effect and the increase of market share of imported cars.