Korean Automobile Industry

OVERVIEWRenewing production record riding onoverall recovery of global auto demandKorean auto industry in 2010 escaped from the spillover of global economicdepression which seen for the last 2 years since 2008 and its production saw thebiggest-ever record. It took a full advantage of the restoring pace in global major automarkets as well as the recovery of home-sales. And the consecutive releases of newmodels such as Hyundai's Avante, Accent, Kia's Sportage R, K5, GM Korea'sAlpheon and Renault Samsung's SM5 led to the increase of auto demand in and outof country. The sales of imported passenger cars in Korean market recorded at 97thousand units and rewrote its highest record. Due to the stable labour-relationsresulting in no production difficulty, each of major auto makers saw an improvementin productivity and operation rate. In the meantime, overseas production under thefavourable condition on small and medium-sized cars in Hyundai and Kia, exceeded2.6 million-unit-mark in annual record.Vehicle production in 2010 posted a rise of 21.6% to 4.3 million units, hitting a newrecord, attributed to the high leap of exports and steady growth of domestic sales.In spite of the absence of government's incentive, domestic sales in 2010 grew 5.1%recording 1.5 million units, fueled by persistent recovering trend in domestic economyand consolidated consumer confidence coupled with makers' varied new modelintroductions and enhanced marketing strategies.Exports in 2010 leapt 29.0% shipping 2.8 million vehicles, triggered by the turnaroundof auto demand around the whole globe from US to emerging nations, improvedquality and consumer reliability on Korean vehicles, increased new modelintroductions, strengthened competitive price due to strong Japanese yen and4Korean Automobile Industry 2011