Yonhap reported that South Korea's production of cars, trucks and buses fell by 10.7% YoY in September 2008, dragged down by weaker demand in the United States and Europe.

Korea Automobile Manufacturers' Association said that output fell to 259,012 vehicles for the fourth consecutive month of declines. September's fall was the biggest monthly drop so far this year.

Hyundai Motor said that sluggish exports to the US and European markets and persistently weak domestic consumption were behind the decline. In September 2008, auto exports slipped 10.4% to 179,786 vehicles with domestic sales down by 14.5% to 78,585.

Last week, Mr Chung Mong koo chairman of Hyundai Motor said that it will try to escape the fallout of the US sparked global financial turmoil by focusing on sales in Europe.

In September 2008, Hyundai sold 24,765 vehicles in the US, down by 25.4% YoY, marking the third straight monthly decline. In the first nine months of this year, Hyundai sales in the US sunk 6% YoY to 337,664 units. Despite the decline, Hyundai has maintained its US sales target of 515,000 units for 2008.