Korea’s automobile output and exports fell in March against a year ago as troubles at producers under foreign ownership continue with turnout from strike-ridden Renault Samsung Motors dwindled by 40 percent whereas GM Korea has yet to fully normalize following a shutdown of one of its factories and bailout from key shareholders.

According to the Ministry of Trade, Industry and Energy on Wednesday, automobile output from Korea in March was estimated at 343,327 units, down 5.5 percent from a year earlier. The fall was due to shorter working days and ongoing partial strike at Renault Samsung Motors that led to a sharp reduction in orders from Nissan Rogue sports utility vehicle, which takes up the half of the turnout from its main plant in Busan.

The labor union of Renault Samsung Motors, the Korean unit of Renault S.A, put on partial strike for 12 days out of total 20 working days in March. This brought down automaker’s output by 40.4 percent compared to the same month a year earlier, making it responsible for 46.6 percent of the country’s total decreased auto output in March.

The country’ largest automaker Hyundai Motor Co. saw its total output fall 0.7 percent despite strong demand for SUVs due to reduced sedan turnout. Its sibling Kia Motor Corp.’s output was down 6.4 percent as its shipments fell across the board except for K3 sedan and compact SUV Soul Booster.

Auto sales in Korea came slipped 5.7 percent on year to 156,927 units in March. Imported car sales in the country dipped 28.4 percent due to inventory shortage at some dealers and weaker demand for diesel cars. Foreign brands’ share in the Korean auto market fell 12.6 percent in March from 16.6 percent on the same month last year.

Eco-friendly car sales in the country soared 45.9 percent to 13,713 units compared to March last year as orders sharply increased following the launch of government subsidy.

The country exported 213,736 cars in March, down 3.3 percent on year. It was down 1.2 percent based on value.

Exports fell mainly due to troubles at Renault Samsung Motors whose overseas shipment plunged 62.3 percent on year due to phase-out of its mainstay Nissan Rogue SUV manufactured in Korea and reduced output from labor union’s extended walkout.

Korean auto industry’s performance for the first three months was slightly better than the same period last year. Auto exports grew 2.4 percent on year, up 4.7 percent based on value, thanks to strong demand for eco-friendly cars and SUVs. Car sales at home, however, was down 3.0 percent on year as imported car sales plummeted 21.4 percent while domestic brands’ sales grew 0.6 percent.

The country’s auto output in the first quarter was down 0.8 percent on year. Productions at Hyundai Motor, Kia Motor, and Ssangyong Motor Co. expanded from a year earlier period but Renault Samsung Motors’ woes dragged down the overall figure.

By Lim Sung-hyun and Cho Jeehyun

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]