SEOUL KOREA - Domestic car sales are forecast to reach an all-time high next year, rising by 2 percent to 1,655,000 units.The sales of import cars, which are rapidly encroaching upon Korea’s domestic car market, are also expected to remain strong next year, reaching 225,000 units.
According to the 2015 Car Market Outlook, a report released by the Korea Automotive Research Institute on November 23, domestic car sales are likely to reach 1,655,000 units next year, up 2 percent from this year’s estimates. This figure represents record-high domestic sales, exceeding the previous record of 1,646,000 units set in 1996.
Key factors behind the robust growth of the Korean car market include the increasing release of brand-new small SUV and medium-sized models, plus the increase in the old car replacement demand. Another factor is the expansion of the import car market in Korea.
However, there are some negative factors, including the possible hike in the benchmark interest rate and the high household debts.
Article provided by The Korea Economic Daily
