MOSCOW, November 3 (RIA Novosti) — South Korean car companies’ sales have fallen 2.25 percent year-on-year, South Korea’s Yonhap News Agency reports.
Vehicle sales for October 2014 totaled approximately 748,000, compared to over 765,000 last year, Yonhap said, citing industry data. Domestically, about 121,500 vehicles were sold, just below the 122,000 sold last year.
Despite the modest overall decline, auto giant Hyundai, which accounted for about 57 percent of all Korean cars sold, saw its sales up 1.9 percent compared with this time last year, Yonghap reported. This was attributed to the company's offering of new models, and to an increase in overseas production.
Renault Samsung Motor Co., a subsidiary of French automaker Renault, saw sales surge nearly 73 percent to a total of 21,980 vehicles; the spike is attributable to the manufacturer’s introduction of popular new models.
Meanwhile Kia Motors, which accounts for about 31 percent of all cars sold, saw its total sales fall 7 percent. Worst hit were GM Korea and Ssangyong Motor Co., which saw their domestic sales plunge 21 and 19 percent, respectively.
The overall market drop has been attributed to stagnant domestic demand, labor disputes disrupting the supply of vehicles for export, and a lack of sales among brands that did not offer new models, Yonghap said. Bloomberg meanwhile marked declining demand down to the devaluation of the Chinese yen, which has eroded South Korean companies’ competitiveness in the Asian market.
Despite the drop last month, overall sales for the first 10 months of 2014 are up 2.85 percent compared to 2013, amounting to 7.3 million compared to 7.1 million last year. Year-on-year, domestic sales rose 3.67 percent, while global sales increased 2.7 percent from the same period last year.
