Korea’s car sales for 2014 1H and outlook for 2014 2H

The Ministry of Trade, Industry and Energy has recently announced provisionally that the car industry had produced 2,342,578 units, sold 807,063 units in the domestic markets and exported 1,596,198 units in the 1st half of 2014, showing year-on-year growth of 2.6%, 7.3% and 0.4%, respectively.

korea's-car-sales Production volume grew by 2.6% year-on-year, despite a reduction in business hours caused by the continuous double-shift program on weekdays, which was attributed to improvements in operating efficiency (maximization of production volume per hour).

Domestic sales grew to 807,063 units with year-onyear growth of 7.3% despite numerous challenges including the domestic sales slowdown in the 1st half of 2014, and this was primarily attributed to the growth in demand witnessed in all vehicle size categories.

In addition, the demand for multi-purpose vehicles grew rapidly due to the expansion of the leisure culture and the improved performance of diesel engines. The table below shows the year-on-year sales shares of multi-purpose vehicles.

Imported cars also recorded the largest sales in the 1st half of 2014, continuing their strong growth in the domestic market.

The automotive sector recorded a historic high of USD 25.53 billion in the 1st half of 2014, representing year-on-year growth of 4.1%, despite the strong won and the slowdown of some markets (Eastern Europe, Latin America, etc.).

Meanwhile, the automotive industry is expected to maintain robust year-on-year growth in production (0.9%), domestic sales (0.7%) and exports (6.9%) in the 2nd half of 2014.

 
 
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