Author: Tronserve admin
Saturday 24th July 2021 10:03 PM
Korea’s Car Output, Sales, Exports Fall in Q1 On COVID-19 Impact
South Korea’s auto industry came under triple scourges in the virus-stricken first quarter with sales at home and abroad as well as output all slumping against a year-ago period and is headed for its worst-ever performance in the first half.
According to data released by the Ministry of Trade, Industry and Energy on Sunday, auto production in Korea tumbled 15.4 percent from a year earlier to 809,975 units during the January to March period.
The loss was attributed to disruptions in the supply of auto components from China that caused shutdowns. Donghee Auto, original equipment manufacturing (OEM) company that assembles Kia Motors’ compact car models including Morning, suspended manufacturing for a week from April 6 to 13. Hyundai Motor will also halt operation of its No.5 plant in Ulsan that produces compact SUV Tucson from Monday to Friday.
Local carmakers shipped 479,388 units of vehicles overseas during the first three months of the year, down 17.6 percent from a year ago.
Domestic sales, however, fell at a slower pace of 6.1 percent to 388,578 units thanks to the cut in consumption tax on passenger cars.
Monthly figure in March fared better on sound sales of newly released cars such as Genesis GV80 and Renault Samsung’s compact SUV XM3 as well as the newest models including Genesis large sedan G80 and Hyundai’s mid-sized sedan Avante. Local automakers’ output in Korea rose 6.8 percent, domestic sales 10.1 percent and exports 1.3 percent in March from a year ago, according to the data.
“The coronavirus had a limited impact on the overseas shipments in March as the carmakers produced and delivered orders placed before the rapid spread of the virus in the U.S. and Europe,” said an official from the ministry, but the exports after April are expected to fall sharply as the pandemic brings the auto industry to a halt across the broader markets in the globe with lockdowns in major markets such as Europe and the United States.