S. Korea's Auto Exports Fall 3.5 Pct In 2017

Umer Jamshaid Published January 16, 2018 | 12:45 PM

South Korea's automobiles exports declined 3.5 percent in 2017 from a year earlier due to weak demand in major markets, including the United States, government data showed Tuesday

SEOUL, (UrduPoint / Pakistan Point News - 16th Jan, 2018 ) :South Korea's automobiles exports declined 3.5 percent in 2017 from a year earlier due to weak demand in major markets, including the United States, government data showed Tuesday.

The number of vehicles shipped abroad stood at 2.52 million units last year, compared to 2.62 million in 2016, according to the data compiled by the Ministry of Trade, Industry and Energy. However, the total value of vehicles shipped overseas rose 3.9 percent on-year to US$41.71 billion, as large sedans and sports utility vehicles (SUV) boosted the overall sales price.

The amount swung to growth for the first time since 2014. "Auto exports shrank on slowing global demands and strikes by some automakers," the ministry said in a release. "Sales ratio of SUVs, eco-friendly vehicles and large sedans increased, while small and midsize sedans were on the decline." Sales ratio of SUVs accounted for 53.8 percent last year to become the most popular type of vehicle, while eco-friendly vehicles were among the fastest growing segments, it noted.

A total of 4.11 million cars were produced in 2017, a 2.7-percent fall from a year earlier, due to a high base effect caused by temporary consumption tax cut in 2016 and shorter working days brought on by strikes at Hyundai Motor Co.

and Kia Motors Corp. Auto sales in the United States, the world's biggest auto market, slipped 8 percent on-year in 2017 due to intensifying competition with global brands, the ministry said. In contrast, outbound shipments to the European Union, South Korea's second-biggest auto destination, jumped 30.1 percent over the period, helped by economic recovery and low tariff under the free trade agreement.

Domestic sales, including imported cars, edged down 1.8 percent on-year to 1.79 million units due to tepid performance of compact and midsize cars, it noted.