Auto production in S. Korea rises on solid exports, local sales

Automobile production in South Korea increased last month on the back of robust car exports and solid sales in the domestic market, a government report showed Thursday.

A combined 333,759 vehicles were manufactured in the country in September, up 13.5 percent from a year earlier, according to the Ministry of Trade, Industry and Energy.

Auto exports gained 3.5 percent from a year earlier to 203,762 units in September despite the negative external conditions caused by the expected U.S. rate hike and economic slowdown in emerging markets.

Local car sales especially showed an upbeat picture thanks to a cut in special consumption taxes for cars and the launch of new models, including Hyundai's Avante and Kia's Sportage as well as demand for multi-purpose autos like Santafe, Sorento and Tivoli.

Domestic auto sales jumped 16.3 percent from a year earlier to 149,327 units in September.

Demand for foreign luxury cars remained strong despite an emissions cheating scandal by German automaker Volkswagen. Imported car sales surged 37.0 percent to 24,323 units in the cited period. Endi