South Korea November 2008 Auto Sales Down 9 %
 |
SEOUL, Dec 1, 2008; Cheon Jong-woo and Kim Jung-hyun writing for Reuters reported that combined sales of South Korean automakers fell 8.6 percent in November, data showed on Monday, a sign that global slowdown is hitting the nation's carmakers, including local leader Hyundai Motor Co.
Sales by global auto makers, not just those in Korea, are expected to fall further as the economic downturn keeps customers from browsing show rooms for new models, analysts said.
A worldwide financial crisis also has made it difficult for drivers to raise money for new cars, they added.
"The fourth quarter is likely to be pretty doomed for all car makers. However, the problem is the next year and no one is free from the impact of weaker demand and the credit crisis," said Cho Soo-hong, an auto analyst at Hyundai Securities.
"We may see a rebound in the second half of the next year if economic stimulus packages take effect, but it is premature to be that optimistic yet," he added.
Global auto makers are fighting against the worst economic slowdown in decades.
Earlier, data showed Japan's overall car sales in November fell 18.2 percent from a year ago.
Hyundai and South Korea's four other carmakers sold 445,111 units in November, compared to 486,762 a year ago and 506,597 in the previous month.
Their overseas sales lost 3.6 percent to 370,894 vehicles November from a year ago and fell 7.5 percent from the previous month.
Auto exports, which account for 10 percent of all South Korean exports, fell an estimated 13.1 percent in value in November from a year earlier, data from the Ministry of Knowledge and Economy showed.
Local sales, which usually carry higher margins, dropped 27.2 percent to 74,217 units from a year earlier and slid 29.6 percent from the previous month.
After the data, shares in Hyundai ended down 1.2 percent at 41,000 won and its affiliate Kia Motors Corp lost 3.29 percent 6,770 won. Ssangyong dropped 4.23 percent.
South Korean stock market .KS11 closed down 1.62 percent. As sales are seen faltering further, South Korean car makers have been taking various steps to rein in costs including production cuts.
Hyundai has decided to stop overtime work from December at all domestic production lines, except one for compact sedans such as the Elantra, which analysts said is expected to cut production volumes by about 20,000 units a month.
South Korean car makers' sales in November 2008:
Total Change vs Overseas Change vs
sales yr ago sales yr ago
Hyundai Motor 234,211 -1.6 198,309 +8.2
Kia Motors 133,507 -3.0 107,362 -4.5
GM Daewoo 62,256 -28.8 57,719 -24.9
Renault Samsung 11,302 -16.3 5,301 -10.8
Ssangyong Motor 3,835 -62.6 2,203 -64.8
---------------------------------------------------------------
Total 445,111 -8.6 370,894 -3.6
Editing by Keiron Henderson