S. Korea’s domestic auto sales decline 11% in July

[THE INVESTOR] Domestic sales of South Korea’s five main automakers fell by 10.58 percent in July from a year earlier, hit hard by the termination of the tax cut on car purchases, according to data released individually by the vehicle manufacturers on Aug. 1. 

The combined local sales of Korea-based automakers -- Hyundai Motor ,  Kia Motors, GM Korea, Renault Samsung and Ssangyong Motor  -- came to 121,144 units in July, in comparison to 135,471 units from the same month last year. The figure also marks a 24.78 percent decline from June. 

According to industry officials, the downturn is attributed in part to the government’s temporary tax benefit program which ended on June 30. The scheme slashed consumer tax by 30 percent on new car purchases in an effort to boost domestic economy. 

The decline came mostly from the two top automakers Hyundai Motor and its smaller affiliate Kia Motors. July sales of Hyundai Motor plunged 20.1 percent on-year to 47,879 units, while Kia Motor fell 8.7 percent to 44,007 units. 

Ssangyong Motor’s July sales decreased 8.1 percent on-year to 6,546 units. 

However, sales of GM Korea and Renault Samsung rose, on the back of their new car releases, Malibu and SM6, respectively. 

GM Korea sold 14,360 units in July, up 15.8 percent on-year, while Renault Samsung sold 7,352 units, up 9.7 percent in the same period. 

Meanwhile, the combined overseas sales decreased 3.8 percent on-year to 524,390 in July. 

In total, both domestic and overseas sales dropped 5.2 percent on-year to 645,523 units.

By Ahn Sung-mi (sahn@heraldcorp.com)