Global Car Sales Down 26% in First Half of Year... Only South Korea's Domestic Market Smiled

[Asia Economy Reporter Suyeon Woo] Amid the impact of the novel coronavirus infection (COVID-19), global sales in the top 10 automobile markets all sharply declined in the first half of this year, while only the Korean domestic market maintained an upward trend. This was thanks to the government's proactive domestic demand stimulus policies and successful quarantine measures, which allowed the domestic market to avoid the adverse effects of COVID-19.

According to the Korea Automobile Manufacturers Association on the 16th, automobile sales in the world's top 10 automobile markets totaled 25.377 million units in the first half of this year, down 26% compared to the first half of last year. During the same period, the Korean market recorded sales of 948,000 units, an increase of 6.6%, rapidly emerging as the world's 6th largest market by domestic sales volume, following China, the United States, Japan, Germany, and India.

Top 10 Global Automobile Markets Vehicle Sales Status in the First Half of 2020 (Unit: Thousand Units, %) / Source: Korea Automobile Manufacturers Association

On the other hand, the remaining nine countries all showed declines ranging from 17% to 52%. The market most severely affected by the global COVID-19 pandemic was India. The Indian automobile market in the first half was 987,000 units, a 51% decrease compared to the previous year. This was due to a nationwide lockdown imposed in April, which led to a complete halt in sales and halved the sales volume for the first half.

Next, European markets such as the United Kingdom (-48%) and Italy (-45%) suffered significant impacts, while sales in the Americas, including the United States (-24%) and Brazil (-38%), also sharply declined. In particular, Brazil, an emerging market, maintained a relatively good level with only a 9% decrease compared to the previous year until the first quarter, but as COVID-19 rapidly spread after April, the decline in automobile sales also widened.

Jung Manki, Chairman of the Korea Automobile Manufacturers Association, stated, "Until exports fully recover, the government's domestic demand stimulation policies must continue," adding, "The revision bill of the Special Tax Treatment Control Act to reduce the automobile individual consumption tax by 70%, currently pending in the National Assembly, should be promptly passed."

This content was produced with the assistance of AI translation services.