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South Korea’s domestic automotive sales to continue upward trend, says GlobalData

South Korea’s domestic automotive sales to continue upward trend, says GlobalData

Following the news that South Korean Automakers witnessed 6.2% increase in cumulative January-November domestic automotive sales in 2020;

Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading data and analytics company, offers his view:

“While the world market suffers from the COVID-19 sales slump, South Korea is set to register record domestic sales in 2020. The country was the among the early COVID-19 hit nations but has also been leading the market recovery. Despite the exports still remaining dwindled due to COVID-19 effect and the resultant economic slowdown, South Korea domestic vehicle demand has remained strong and has been improving year-on-year. South Korea’s top five automakers Hyundai Motor Co., Kia Motors Corp., GM Korea Co., Renault Samsung Motors Corp. and SsangYong Motor Co. reported a 6.2% increase in domestic sales in January-November 2020. The companies sold a cumulative 1.47 million units in the period.

“There are several factors that have been supporting the positive uptick in domestic sales such as the increased need for personal mobility, the availability of incentives on electric vehicles, tax break by the government, aggressive promotion campaigns and lastly, the launch of new models, which has substantially fuelled the new vehicle demand. The vehicle sales are anticipated to remain strong towards the year-end. If the trend continues, the January-December 2020 vehicle sales could cross 1.6 million units, as per industry data. Which would mean highest new vehicle sales total since year 2002.

“At a time when exports, which account major share in Korean automaker sales, are declining, growing domestic demand is a major positive sign for domestic OEMs. All Korean OEMs except Ssangyong reported year-on-year increase in domestic sales volumes. Right strategy, better positioned products and conducive government policies have helped to revive the South Korean auto sales, which have been declining since 2016. The market is anticipated to continue upward movement within the given environment.”