Various South Korean car makers are expected to bear the impact of a global economic slowdown next year. This belief stems from the data published in a government report, which says that the output and exports of South Korean automobile companies are expected to grow at a lower pace in comparison to previous year.
The Ministry of Knowledge Economy, sourcing its data from the Korea Automobile Manufacturers Association (KAMA), said in a report, “The country's five automakers were expected to produce 4.7 million vehicles at domestic plants in 2012, up 3.1 per cent from the estimated 4.56 million units for this year.”
However, the expected growth of 2012 will be lower in comparison to the estimated 6.7% expansion during 2011. The projected sales figures for next year are also lesser than the 21.6% sudden increase in 2010.
The report also mentioned that the vehicles manufactured at the overseas plant, which were expected to reach 3.35 million units in 2012, were around 9.8% higher than the proposed 3.05 million units for 2011. However, the estimation for next year's growth will be lower than the 17.1% projected increase expected for the current year.
According to the Ministry of Knowledge Economy, “The global economy showed a temporary recovery after the 2008 global financial crisis, but uncertainties over the economic conditions for 2012 are growing due to the possibility for deeper European fiscal crisis and the possible economic slowdown in major advanced nations.”
The ministry believes that the country's automobile industry will continue to grow in 2012 due to surging demand from emerging economies. However, it also concluded that a slower growth is precedented owing to unstable external factors.
The report also stated that the cumulative car exports made by local car manufacturers are expected to increase by 3.9% and reach a figure of 3.2 million units in 2012. This figure will be much lower in comparison to the estimated 11.1% growth in 2011.
On the bright side, vehicle sales are expected to see a positive change, with domestic sales likely to jump by 2.8% to 1.64 million units sold in 2012. The expected sales boost can be attributed to a high demand for imported vehicles. Local sales are also expected to increase by an impressive 21.7%, with record sales of around 140,000 units.
Thus, even with economic slow down taking its toll on the output and exports of South Korean carmakers in 2012, domestic sales are expected to stay afloat.
