Car production highest in four years

By Choi Sung-jin

The number of motor vehicles produced last year is estimated at about 4.58 million, the most since the 4.65 million in 2011, industry sources said Friday.

Production by carmakers with manufacturing plants here _ Hyundai Motor, Kia Motors, GM Korea, Renault-Samsung, Ssangyong Motor, Zyle Daewoo Bus and Tata Daewoo _ amounted to 4,145,337 cars in the first 11 months of last year, up 1.3 percent from the same period in 2014.

Assuming that December production was similar to the 434,709 units recorded in the same month in 2014, annual output is estimated at 4,580,086 cars, a 1.2 percent increase from 2014, the sources said. Auto production reached a peak in 2011 with 4,657,094 cars but fell for two consecutive years to 4,561,766 in 2012 and to 4,521,429 in 2013 before rebounding to 4,524,932 in 2014.

The sources said the sharp increase last year was attributable to the popularity of recreational vehicles and the growth of domestic sales thanks to cuts in individual consumption tax. The Korea Automotive Research Institute estimated the domestic sales at about 1,810,000 cars last year, up 9.1 percent from 2014.

Most carmakers, including Kia, Ssangyong and Renault-Samsung, recorded sales increases ranging from 1.4 percent to 36.9 percent in the first 11 months of 2015, compared with a year earlier. But Hyundai and GM Korea suffered a 1.5 percent sales drop, the institute said.