Free Report:
The Oil Industry is here to stay: A worldwide assessment of current issues
Free Energy Market Research Reports
Automotive
Batteries & Fuel Cells
Chemical Industry & Markets
Coal
Energy
Maps
Metals
Nuclear
Oil & Gas
Petroleum
Power
Renewables
Custom Research
Energy Events & Conferences
Contact
Terms & Conditions
Privacy
Home >
South Korea Autos Report Q3 2010
Management Report
Published: June 2010
Pages: 48
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 353.33 Buy Now!
Research from: Business Monitor International
Sector: Automotive
We have substantially revised upward our expectations of sales growth in South Korea’s auto market in 2010. We now anticipate that domestic vehicles sales will rise 16% y-o-y during 2010 as a whole, compared with our earlier forecast of 6%. This would result in total new vehicle sales in the domestic market during 2010 of 1,618,462 units. This revision to our forecast follows an adjustment of interest rate expectations (the cost of borrowing is likely to remain on hold, owing to the appointment of a dovish central bank chief and low inflation) and reasonably firm car sales figures during Q110. In the first three months of 2010, new vehicle sales in South Korea rose 35.9% y-o-y, to 349,663 units. During the remainder of the year, the rate of sales growth should moderate in percentage terms. The rise in car sales in the initial months of 2010 have been buoyed in percentage terms by base effects, as sales in the first months of 2009 (the nadir of the economic downturn) were extremely depressed. These % y-o-y base effects will fade as 2010 wears on.
We have substantially revised upward our expectations of sales growth in South Korea’s auto market in 2010. We now anticipate that domestic vehicles sales will rise 16% y-o-y during 2010 as a whole, compared with our earlier forecast of 6%. This would result in total new vehicle sales in the domestic market during 2010 of 1,618,462 units. This revision to our forecast follows an adjustment of interest rate expectations (the cost of borrowing is likely to remain on hold, owing to the appointment of a dovish central bank chief and low inflation) and reasonably firm car sales figures during Q110. In the first three months of 2010, new vehicle sales in South Korea rose 35.9% y-o-y, to 349,663 units. During the remainder of the year, the rate of sales growth should moderate in percentage terms. The rise in car sales in the initial months of 2010 have been buoyed in percentage terms by base effects, as sales in the first months of 2009 (the nadir of the economic downturn) were extremely depressed. These % y-o-y base effects will fade as 2010 wears on.
The continued growth in domestic sales will, in turn, support production, which we now think will rise nearly 17%, to 4.09mn vehicles, for 2010 as a whole. This represents an upward revision to the 6% production growth forecast we published last quarter. KAMA reported in April 2010 that vehicle production in Q110 was 974,365 units, a rise of 41.6% y-o-y.
The country generated very strong vehicle production figures and exports during the first quarter of the year (production rose 41.6% y-o-y in the first three months f 2010, and most vehicles produced in the country end up being exported). We now forecast that vehicle exports in 2010 will register 2.51mn units, a rise of 17% from 2009 (in terms of % y-o-y growth, positive base effects will fade later in the year, as the Q109 figures were very low).
Exports of new vehicles from South Korea surged by 47.5% y-o-y in March 2010, to 238,631 units, according to KAMA. Growth in sales in the US, Western Europe, Latin America and the Middle East were all behind this very strong performance in March. Exports for Q110 rose 35.2% y-o-y, to 589,969, units.
So far 2010 has been a good year for both Hyundai Motors and Kia Motors. Kia’s global sales performance remained excellent in the first three months of 2010. The company’s global sales rose 69% y-o-y, to 475,144 units. Meanwhile, Hyundai’s global sales rose 36% y-o-y, to 840,258 units.
The continued growth in domestic sales will, in turn, support production, which we now think will rise nearly 17%, to 4.09mn vehicles, for 2010 as a whole. This represents an upward revision to the 6% production growth forecast we published last quarter. KAMA reported in April 2010 that vehicle production in Q110 was 974,365 units, a rise of 41.6% y-o-y.
The country generated very strong vehicle production figures and exports during the first quarter of the year (production rose 41.6% y-o-y in the first three months f 2010, and most vehicles produced in the country end up being exported). We now forecast that vehicle exports in 2010 will register 2.51mn units, a rise of 17% from 2009 (in terms of % y-o-y growth, positive base effects will fade later in the year, as the Q109 figures were very low).
Exports of new vehicles from South Korea surged by 47.5% y-o-y in March 2010, to 238,631 units, according to KAMA. Growth in sales in the US, Western Europe, Latin America and the Middle East were all behind this very strong performance in March. Exports for Q110 rose 35.2% y-o-y, to 589,969, units.
So far 2010 has been a good year for both Hyundai Motors and Kia Motors. Kia’s global sales performance remained excellent in the first three months of 2010. The company’s global sales rose 69% y-o-y, to 475,144 units. Meanwhile, Hyundai’s global sales rose 36% y-o-y, to 840,258 units.