Korea's 2003 Auto Sales To Increase

SEOUL December 15, 2002; Reuters reported that South Korean carmakers will sell a record 3.2 million vehicles next year, up three percent from 2002, the Korea Automobile Manufacturers Association (KAMA) said on Sunday.

Domestic sales will show a lower percentage increase in 2003 due to the slowing economy, but exports will pick up on the back of rising global demand and higher product quality, the association said in a statement.

In 2003, Korean carmakers are expected to sell 1.65 million cars domestically and 1.55 million units abroad compared to projected sales of 1.6 million units at home and 1.5 million units overseas this year, the association said in a statement.

The image of our brand and product quality is improving among overseas buyers and global demand is expected to slowly recover next year," the association said

The association also attributed the estimated increase in exports to higher sales of mid- and large-sized sedan and sport utility vehicles and the normalization of operations at Daewoo Motors after the takeover by General Motors .

Regionally in 2003, exports to North America are seen at 740,000 units, up 2.8 percent from 2002 while exports to Western Europe are expected to increase by 8.6 percent to 430,000 units. Some 120,000 units will be sold in the Asia-Pacific region, up 14.3 percent from this year.

Korean car sales are expected to climb 5.2 percent in 2002 with domestic sales outpacing exports for the first time in five years.

The association said there should be severe competition next year in the sales of compact cars in Asia's second-largest car market due to the recently launched new models by Renault Samsung Motors Inc and GM-Daewoo.

South Korea is projected to import 28,000 foreign cars in 2003, up 55.6 percent from this year.