Overseas Reliance Creates Risks For South Korean Carmakers

Data for October show that South Korea's five national carmakers relied heavily on overseas sales to make up for a sluggish domestic market. Combined global sales for the five brands were up 10.2% year-on-year (y-o-y), at 676,580 units, but domestic sales were down 8.8% y-o-y to 120,998. The total was bolstered by a 15.4% y-o-y increase in international sales, which include vehicles produced overseas. However, BMI believes that this reliance on overseas sales will be risky heading into 2012. Many of the markets where South Korean brands are thriving are expected to suffer a tough year for vehicle sales.

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