Wednesday, June 1, 2005

South Korean auto production to rise 44% by 2012

Associated Press

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SEOUL, South Korea -- South Korean auto manufacturing will rise 44 percent to more than 5 million units by 2012, with 2.1 million produced in factories overseas, a report said Tuesday.

The predicted steady growth would give brands such as Hyundai, Daewoo and Kia a 7.8 percent share of the global market, the Yonhap news agency said, citing research by the Korea Institute for Industrial Economics and Trade.

South Korean makers made 3.47 million automobiles last year, and the figure will rise to 4 million by 2007, the report said. Output will reach 4.8 million units by 2008, after which production will slow slightly, the it said.

Exports will reach 3.2 million units by 2012, vastly outstripping domestic sales which are expected to hit 2 million by that year. Foreign sales from Korean plants at home have been growing relatively slowly due to Korean makers' setting up production facilities overseas.

Autos are one of South Korea's key industries, employing about 200,000 people. Most brands are subsidiaries of family owned conglomerates knows as chaebol that sell everything from ships to life insurance.