South Korean Automakers Post Strong Sales in 2006, Despite Challenges

Strategic Insights -

South Korean automakers, led by Hyundai Motor Co., reported a 11.5 percent gain in sales in 2006, driven by strong exports and a favorable market. Despite unfavorable factors such as a strong currency, labor strikes, and higher oil prices, the industry saw significant growth, with Hyundai Motor controlling over half of the South Korean auto market. GM Daewoo Auto & Technology Co. overtook Kia Motors Corp. as the country's second-largest automaker, with sales totaling 1.52 million units in 2006, compared to Kia's 1.34 million units.

Key Takeaways:

  • Hyundai Motor Co. saw a 5.1 percent increase in sales in 2006, with domestic sales up 1.8 percent to 581,092 units and exports higher by 6.1 percent to 2,082,906 units.
  • GM Daewoo Auto & Technology Co. overtook Kia Motors Corp. as the country's second-largest automaker in 2006, with sales totaling 1.52 million units.
  • Renault Samsung Motor Co. enjoyed a 34.8 percent increase in sales in 2006, with domestic sales rose 3.2 percent to 119,088 units and exports soared more than 11 times to 41,320 units.
  • Ssangyong Motor Co. saw its sales fall 14.2 percent in 2006, hit by labor strikes and shrinking sales of its sport utility vehicles.
  • Hyundai Motor failed to meet its original 2006 sales goal of 2.69 million units, citing labor strikes and an embattled company chairman, Chung Mong-koo.

Statistics:

  • Total sales of South Korean automobiles at home and abroad in 2006 totaled 5.81 million units.
  • Domestic sales gained 1.9 percent to 1.15 million units, while exports climbed 14.2 percent to 4.66 million units.
  • Hyundai Motor sold a total of 2.66 million units in 2006, with domestic sales up 1.8 percent to 581,092 units and exports higher by 6.1 percent to 2,082,906 units.
  • GM Daewoo's domestic sales rose 19.2 percent to 128,332 units and exports jumped 33.1 percent to 1,397,487 units in 2006.
  • Renault Samsung's vehicle sales jumped 34.8 percent from a year earlier in 2006, with exports soaring more than 11 times.

Sources:

  • Yonhap News Agency (January 2)
  • Hyundai Motor Co.
  • GM Daewoo Auto & Technology Co.
  • Renault Samsung Motor Co.
  • Ssangyong Motor Co.