Korean automakers produce more cars overseas

[THE INVESTOR] South Korean automakers produced more cars at their overseas plants than in South Korea, industry data showed on Sept. 27.

From January to August, seven automakers -- including Hyundai Motor, Kia Motors, GM Korea, Ssangyong Motor and Renault Samsung, Daewoo Bus and Tata Daewoo -- produced 2.77 million units here, according to data by the Korea Automobile Manufacturers Association.

Meanwhile, Hyundai and Kia produced a combined 2.91 million units at their overseas plants.

Local automakers have been rapidly building new plants in major overseas markets such as the US, China, India, Europe, Russia and Brazil, moving away from their smaller domestic market.

According to industry officials, the domestic downturn is attributed in part to the termination of the government’s tax cut on new car purchases and ongoing labor strikes.

The overseas production level is expected to increase even further as Kia started manufacturing at its new Mexico plant in May and Hyundai plans to open a new plant in China by the end of this year.

By Ahn Sung-mi (sahn@heraldcorp.com)