Exports lift Hyundai Motor
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Hyundai's exports to the U.S. and Europe are growing.
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SEOUL, South Korea (Reuters) -- South Korea's top carmaker, Hyundai Motor, has reported an 11.5 percent rise in November sales, as robust exports to the key U.S. and European markets more than offset stumbling sales at home.
Many South Koreans are deferring car purchases, with fragile private spending slow to pick up and restraining the economy, which bounced out of recession in the third quarter.
But exports are growing on the back of a recovering global economy.
"The Sonata sedans led exports in the U.S. market while the Click compact continues to sell well in Europe," said Jake Jang, spokesman for Hyundai.
"We anticipate sluggish domestic demand to pick up after hitting a trough in January and February."
Hyundai, 10 percent owned by U.S.-German automaker DaimlerChrysler, sold 184,887 vehicles in November, compared with 165,795 a year ago.
Exports rose 27.8 percent to 135,832 and domestic sales slipped 17.6 percent to 49,055. The figures include sales from Hyundai's overseas plants.
Shares in Hyundai Motor were up 4.7 percent at 47,750 won, against the broader market's 1.8 percent rise.
Racy new models, improved quality and incentives such as extended warranties have helped make South Korea the world's fifth-largest automobile producer behind the United States, Japan, Germany and France.
Auto makers have been one of the main engines of economic growth for South Korea, Asia's fourth-largest economy.
Meanwhile, the Korea Automobile Manufacturers' Association said last week new models, lower oil prices and a rebound in domestic demand would boost combined automobile output to a record 3.31 million next year.
The forecast for next year is up 8.4 percent from this year's estimate and reflects an expected 5.1 percent growth in exports to 1.79 million, an official at the association said. Local sales were expected to rise 12.6 percent to 1.52 million.
Copyright 2003
Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
