Korea’s car exports to reach 2.9 mil. in 2011

By Kim Tae-gyu

Automakers in Korea are expected to combine to ship a total of 2.9 million vehicles to overseas markets in 2011, up 4.7 percent from a year ago, boosted by a recovery from the financial crisis.

The Ministry of Knowledge Economy (MKE) came up with the forecast on Sunday based on the expectations of carmakers such as Hyundai Motor, Kia Motors, Renault Samsung Motors, GM Daewoo and Ssangyong Motors.

``Demand from both domestic and global markets for Korean vehicles are expected to remain strong throughout this year so that the country will be able to achieve the unprecedented exports,’’ MKE official Shin Jeong-hwan said.

``The vehement sales would be buttressed by brisk production and the number is projected at a record-high 4.4 million, up 4.8 percent from a year before.’’

Indeed, the annual production of Korean vehicles has been on the steady increase during the mid-2000s from 3.7 million in 2005 to 3.8 million in 2006 and 4.1 million the next year.

The yearly tally plummeted to 3.8 million in 2008 in the aftermath of the international economic turmoil and further headed down to as low as 3.5 million in 2009.

The figure regained the 4 million mark last year at 4.2 million and is expected to stabilize at 4.4 million this year.

``A series of new Korean models are lining up to debut in the global markets. They will draw the attention of global customers since the awareness of Korean cars has substantially risen,’’ Shin said.

Last year, the aforementioned five automakers have released just six new models but the total is poised to more than double this year to 14.

The imports of foreign automobile brands are also expected to rocket at a double-digit pace to reach the 100,000 milestone for the first time in Asia’s fourth-largest economy.

The MKE predicted that the overseas brands would carve out a historic-high 6.2 percent among the demand for new cars during the Year of the Rabbit, up from 5.8 percent last year.

The Korea Automobile Importers and Distributors Association (KAIDA) announced last week that 24 overseas brands sold 90,562 vehicles here last year to represent a 48.5-percent jump from 2009.

German players dominated as perennial market leader BMW managed to keep the leadership at 16,798 closely trailed by Mercedes Benz with 16,115 and Volkswagen with 10,154.

These fell far short of business bellwether Hyundai Automotive Group that accounted for around four fifths of the annual demand here. Its dual flagships of Hyundai Motor and Kia Motors sold more than 1.1 million vehicles together in the local market last.

In consideration of the fact no foreign brands topped the 10,000 milestone per year until 2009, market observers point out that last year’s sales will be very encouraging for overseas manufacturers.