S. Korean carmakers' sales jump 10.9 pct in July

By Lee Joon-seung

SEOUL, Aug. 1 (Yonhap) -- Car sales by South Korean automakers rose last month from a year earlier, helped by harmonious labor relations and consumer demand for brand new cars, industry-wide data showed Friday.

The combined sales of five local car manufacturers reached 714,974 vehicles in July, up 10.9 percent from 644,435 vehicles sold a year ago. The total excludes complete knockdown (CKD) kits shipped abroad for assembly.

Carmakers said not having labor strife, including workers boycotting overtime work, helped output numbers when compared to last year, when several companies experienced labor-management issues.

They said the release of new car models also bolstered demand for vehicles made by the five original equipment manufacturers (OEMs) last month, propping up sales both at home and in overseas markets.

In the one-month period, domestic sales rose 1.9 percent on-year from 124,963 to 127,319, while overseas sales jumped 13.1 percent from 519,472 to 587,655.

Of the local OEMs, only Ssangyong Motor Co. failed to post on-year growth in July.

Hyundai Motor Co. and Kia Motors Corp., flagship companies of Hyundai Motor Group and the country's two largest carmakers, reported growth in both local and overseas sales.

GM Korea Co. and Renault Samsung Motors Co. (RSM) also saw expansion at home and abroad.

Hyundai Motor posted monthly figures of 379,820 vehicles, with Kia saying it shipped out 261,766 units last month. The numbers represent 4.4 percent and 23.4 percent on-year growth, respectively.

"A general absence of labor-related disturbances and demand for new cars pushed up sales, despite challenges posed by unfavorable exchange rates and stiffer competition from rivals who have moved to release new cars of their own," a source at Hyundai said.

The carmaker said that last month's sales were buoyed by strong demand for the new Sonata LF, the 2015 Genesis premium sedan and Grandeur full-size car that recently received a diesel power train. It added that sales of its SUV pushed up overseas sales.

Hyundai's smaller corporate cousin Kia said its completely redone Carnival minivan was a runaway hit in the home market, selling 8,740 units to make it the carmaker's best-selling car in July. The Carnival, sold as the Sedona in the United States, should begin reaching overseas markets starting this summer.

Among smaller carmakers, GM Korea, which sells vehicles under the Chevrolet badge, said it did very well in the export market, while also defending sales figures at home.

Its sales volume hit 49,337 units last month, up 6.6 percent from a year earlier. Exports jumped 9.3 percent to 36,030 vehicles while domestic sales edged up imperceptibly to 13,307 units.

Sales of RVs and small cars propped up exports, while the Orlando and Malibu models helped domestic sales.

"July's sales figures mark the best numbers reached for the month since the company was founded in October 2002," the carmaker said.

Renault Samsung, the local unit of French automaker Renault S.A., reported selling 12,367 vehicles overall, a 22.6 percent surge vis-a-vis 10,084 units sold in July 2013.

"The numbers show the carmaker continuing to make strides into the second half," RSM said in a press release.

It said sales of cars like the diesel version of the SM5 midsize sedan played a role in the gains, as well as demand for the QM3 and QM5 Neo SUVs.

Ssangyong Motor Co., a local unit of Indian SUV maker Mahindra & Mahindra Ltd., sold 11,684 cars, down 4.9 percent from a year earlier. It said that, despite weaker numbers, models such as the Korando C have done well in places such as China and the European markets. Decreased sales reflected uncertainties in Russia caused by the Ukrainian standoff, it said.

For the first seven months of 2014, the total number of vehicles sold by local OEMs stood at 5,222,792, up 4.3 percent from 5,008,059 units sold a year earlier.

Domestic sales moved up 4.6 percent annually from 797,776 units to 834,687 vehicles, while overseas sales gained 4.2 percent from 4,210,283 to 4,388,105 cars.

yonngong@yna.co.kr
(END)