Korea's local automotive market tends downwards

Korea’s local automotive market tends downwards

According to Korea Automobile Manufacturers Association (KAMA), the number of local automobiles, produced and sold to the domestic and overseas markets, amounted to 477'172 units in January-February 2004 period with a decrease of 3.7% compared to the same period of last year. Korean automakers are passing through hard times to meet their targets for this year despite strong exports. As, low consumer sentiment has shown no sign of ascension. In the first two months of 2004, five local automakers reported a sales volume of 610'716 units, up by 10% compared to 555'114 units recorded in the same period of last year. But, this result has a faint effect on country's economic growth. Automobile production in Korea, which has shown an upward trend since 2001 decreased by 14'502 units in the first months of 2004, due to weak sales. Korea's largest automaker Hyundai Motor announced a 15.2% decrease in its domestic sales and exports in the aforementioned period. In addition, Kia Motors reported an increase of 1'209 units while GM Auto & Technology also posted an increase of 36'848 units.