South Korea’s automobile and consumer electronics sectors are feeling the pinch of a strong local currency that is forcing some to downgrade second-quarter earnings estimates, industry sources said Sunday.

The Korean won started to strengthen against the U.S. dollar in late March and rose to 1,020.1 won to the greenback as of Friday, compared with an exchange rate that hovered in the 1,060 won to 1.070 won range in the first few months of 2014.

According to Korea Automotive Research Institute, a think tank under Hyundai Motor Group, the world’s fifth-largest automotive conglomerate, the auto industry will suffer lost sales of 420 billion won ($411.6 million) if the won appreciates 10 won to the dollar.

It said the current exchange rate trend is particularly worrisome since the global car market has become extremely competitive.

“Concerns are mounting because rivals such as Japanese and German carmakers are pushing for greater sales with the introduction of new cars,” it said. (Yonhap)