South Korean auto exports are expected to grow 13.9 percent annually to a record US$43.3 billion in 2006 on the strength of improved quality and brand recognition, a government report said Tuesday.
A total of 2.7 million vehicles are expected to be shipped abroad this year and it will the fifth consecutive year since 2002 that the country's automobile exports will post a double-digit gain, according to the report by the Ministry of Commerce, Industry and Energy.
The trade surplus in the auto sector is likely to reach $37.3 billion this year, compared to $33.2 billion for 2005, it said.
Buoyed by strong overseas demand, annual auto production is forecast to amount to 3.82 million units. The number is smaller than the 4-million forecast made earlier in the year, and is due to the labor strife that hit the auto industry over the summer months.
Local sales are predicted to be relatively unchanged from last year at 1.15 million units as high fuel prices and a weak economy have affected demand, the ministry said.
Overseas production of South Korean automobiles is projected to come to 1 million units as more local carmakers have built foreign assembly lines. This number is expected to reach 1.25 million units in 2007.
The ministry said the achievement is noteworthy since it comes in the midst of unfavorable exchange rates, and is the result of efforts to upgrade quality and build up global competitiveness.
Seoul, Dec. 19 (Yonhap News)
S. Korean auto exports to hit US$43.3 bln in 2006 |
