South Korea's five automakers, led by Hyundai Motor Co., saw their sales gain 11.5 percent in 2006 from a year ago on strong exports, despite unfavorable factors such as the Korean currency's strength, labor strikes and higher oil prices.
GM Daewoo Auto & Technology Co. overtook Kia Motors Corp. in 2006 as South Korea's second-leading automaker in terms of annual sales for the first time since the embattled U.S. auto giant General Motors Corp. and its partners acquired the formerly bankrupt Daewoo Motor in 2002.
According to figures released on Tuesday, sales of South Korean automobiles at home and abroad last year totaled 5.81 million units last year, compared with 5.21 million sold in 2005.
Domestic sales gained 1.9 percent to 1.15 million units, while exports climbed 14.2 percent to 4.66 million units, the figures showed.
Hyundai Motor, which controls more than half of the South Korean auto market, sold a total of 2.66 million units in 2006, up 5.1 percent from a year earlier, with domestic sales up 1.8 percent to 581,092 units and exports higher by 6.1 percent to 2,082,906 units.
However, Hyundai Motor failed to meet its original 2006 sales goal of 2.69 million units, because of labor strikes and an embattled company chairman.
The 69-year-old Chung Mong-koo was arrested in April last year on charges of embezzlement and breach of trust. After spending nearly two months in prison, Chung was released on bail and is now on trial.
Earlier in the day, Hyundai Motor said it's sales target for 2007 was 2.73 million vehicles at home and abroad.
"Hyundai Motor needs to sustain stable profitability by raising its brand awareness... for global customers," Chung told employees in his New Year's message.
GM Daewoo enjoyed its biggest-ever sales year in 2006 by selling 1.52 million units, compared with 1.34 million units sold by Kia Motors, an affiliate of Hyundai Motor.
GM Daewoo's exports have quadrupled since the acquisition, as the South Korea-based GM unit exported a wide range of cars under the Detroit-based auto brand.
For all of 2006, GM Daewoo's domestic sales rose 19.2 percent to 128,332 units and exports jumped 33.1 percent to 1,397,487 units, according to the company.
Two smaller rivals -- Renault Samsung Motor Co. and Ssangyong Motor Co. -- also swapped their ranking last year.
Last year, Renault Samsung, owned by France's Renault SA, sold 160,408 units, compared with 121,196 units sold by Ssangyong Motor, controlled by China's Shanghai Automotive Industry Corp.
For all of 2006, Renault Samsung's vehicle sales jumped 34.8 percent from a year earlier. Domestic sales rose 3.2 percent to 119,088 units and exports soared more than 11 times to 41,320 units.
In contrast, Ssangyong Motor saw its sales fall 14.2 percent, hit by labor strikes and shrinking sales of its sport utility vehicles.
Ssangyong Motor's domestic sales declined 23.9 percent to 55,947 units and exports fell 3.7 percent to 65,249 units.
Seoul, Jan. 2 (Yonhap News)
S. Korea's 2006 auto sales rise 11.5 pct; GM Daewoo beats Kia Motors |
