South Korea’s automobile market will likely suffer 0.9 percent negative growth next year due to lower overseas demand, an industry association said Thursday. (Image: Yonhap)
SEOUL, Dec. 21 (Korea Bizwire) — South Korea’s automobile market will likely suffer 0.9 percent negative growth next year due to lower overseas demand, an industry association said Thursday.
In 2018, carmakers are expected to sell a total of 4.39 million vehicles, with 2.57 million units shipped abroad and domestic sales reaching 1.82 million units, the Korea Automobile Manufacturers Association (KAMA) said in a report.
The figure is down from an estimated 4.43 million autos to be sold this year. Of the total, sales at home are expected to hit 1.82 million units and shipments abroad to stand at 2.61 million units.
Domestic sales are forecast to remain unchanged next year due to weak consumer sentiment amid increased household debt and rising oil prices, according to the KAMA report.
“To help boost vehicle sales, the government needs to cut individual consumption taxes for new car purchases and seek policies to stabilize foreign exchange rates,” KAMA Chairman Kim Yong-geun said in the report.
He also urged carmakers and their unions to improve cooperative ties for a win-win survival in the long term in the face of tougher competition with rivals and an economic slowdown.
On Wednesday, Hyundai Motor Co.’s union tentatively agreed to a wage deal after their industrial actions cost the company 62,600 vehicles valued at 1.31 trillion won (US$1.2 billion) in production losses this year.
For final approval, the tentative deal is subject to a vote by the union Friday.
(Yonhap)
