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Car Sales Rise In South Korea
May 01, 2007

A combined forty six percent jump was reported by South Korean carmakers in last month vehicle sales, with Hyundai posting monthly evidence, however the outlook about the future quarters is still unclear.

The carmakers demonstrated recovery signs in the midst of lower oil prices & as the interest rates weren't likely to rise in future. However, automotive industry analysts told it was too early to become optimistic on this sector yet. An automobile industry expert at Woori Investment & Securities said that Asia's 3rd largest nation isn't strong enough for raising its local vehicle demand.

Some industry experts expects that South Korean carmakers will observe a drop in local car sales in Q4 after enjoying increased car sales in 2005, when the consumers rushed to purchase new vehicle before a tax benefit is over. Outlook for exports is still not clear amidst intensifying competition in fast developing markets like China.

In September 2006, the combined vehicle sales in South Korea's top 5 carmakers grew to 547,371 cars as compared to 375,132 last year. Also, vehicle exports increased 47.8 percent and reached to 432,892 cars and domestic sales increase 39.1 percent to 114,479 vehicles.

As per industry experts Automobile account for ten percent of South Korea's total exports & is a key driver for the growth of the industry.

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