South Korean Auto sales up 32% in August 2004

Seoul September 1, 2004; Bloomberg reported that Hyundai Motor Co., Kia Motors Corp. and three other Korean automakers sold 32 percent more vehicles last month helped by growing demand for their vehicles in the U.S., Europe and China.

The five automakers sales together rose to 333,711 vehicles in August, from 253,162 sold a year earlier. Of that total, domestic sales fell 2.2 percent, the slowest decline since they began falling in March, 2003. Exports rose 49 percent to 249,396.

The automakers aim to revive domestic demand with the introduction of new vehicles, such as Hyundai's new Sonata sedan.

"Exports have helped make up for weak demand at home and that trend will likely continue for some time," said Kevin Lee at Dongwon Investment Trust Management Co.

"It may take some time for domestic demand to recover, but the general consensus is that it won't get any worse." Hyundai Motor said it sold 177,139 vehicles last month, 18

percent more than a year earlier. Of that total, domestic sales fell 8.4 percent from a year earlier to 42,205. Exports, including sales from its plants in India, China and Turkey, rose 30 percent to 134,934. Kia, Korea's second-largest automaker and an affiliate of Hyundai Motor, sold 72,284 of its Optima sedans, Sorento sport-utility vehicles and other models last month, 74 percent more than a year earlier. Of that total, domestic sales rose 32 percent from a year ago to 21,170 vehicles, while exports more than doubled to 51,114 units.

GM Daewoo Auto & Technology Co., the country's third-largest automaker formed by

General Motors and its partners, said it sold 67,070 vehicles last month, 50 percent more than a year earlier. Domestic sales of its Magnus, Kalos and other cars dropped 18 percent from a year ago to 7,607 units, while exports increased 68 percent to 59,463 vehicles.

Ssangyong Motor Co., Korea's fourth-largest automaker, said it sold 11,014 of its Chairman sedans, Rexton sport-utility vehicles and other models last month, 8.5 percent more than year earlier.

Domestic sales dropped 12 percent from a year ago to 7,302 vehicles in August, while exports more than doubled to 3,712. Renault Samsung Motors Co., 70 percent owned by France's Renault SA and the country's smallest carmaker, said unit sales fell 6.2 percent in August to 6,204 units. Sales in Korea declined 7.5 percent from a year earlier to 6,031 cars, while exports rose 82 percent to 173 vehicles.