Yonhap reported that the growth of South Korea's automobile production and exports will slow sharply in 2012 from 2011 due to a global economic downturn.

According to the report by the Ministry of Knowledge Economy, the combined output of the country's five automakers, including vehicles produced at overseas plants, is expected to reach 7.61 million units in 2011, growing 10.7% YoY from 6.87 million in 2010.

The ministry, citing a report from the Korea Automobile Manufacturers Association, said that their combined production in 2012, however, is estimated to rise only 5.8% to 8.05 million units. The automakers' total output will surpass the 8 million mark for the first time in 2012.

The ministry said that "The global economy showed brief signs of recovery since the 2008 financial crisis but conditions for 2012 are continuing to worsen due to growing uncertainties stemming from the European crisis and signs of economic downturns in developed markets."

It said the country's total automobile exports will likely grow 3.9% YoY to 3.2 million units in 2012 compared with an estimated 11.1% growth in 2011. Vehicles produced overseas are not counted as exports.

According to the ministry, domestic sales of vehicles produced by South Korean manufacturers will likely grow 1.4% to 1.5 million units in 2012, similar to this year's estimated gain of 1%.

Sales of imported vehicles, on the other hand, are expected to surge 21.7% to a record high of 140,000 units in 2012, gaining further ground from this year's estimated growth of 15.9% to 115,000 units.

Meanwhile, the ministry said the country's automobile production in November 2011 rose by 10.1% YoY to 428,516 vehicles. The monthly gain was led by brisk exports, which jumped 15.5% YoY to 300,105 vehicles. Domestic sales dropped 12.7% to 115,768.

(Sourced from www.yonhapnews.co.kr)