COVID-19 to Slash Car Exports by Nearly Half
20 April, 2020
Korea's car exports are anticipated to stop by up to half this month as the world economy has been ravaged by the coronavirus epidemic.
The Korea Automobile Manufacturers Association questioned five domestic carmakers on Sunday and discovered that they be prepared to export only 126,589 cars in April, down 43 percent from 222,337 cars this past year.
Hyundai has turn off all its dealerships in five major European markets including Germany and Italy, in India and in Mexico.
Over 9,000 car parts companies are in even deeper trouble as demands from both domestic and overseas clients has fallen. Their sales declined sharply as car factories turn off since February. According to KAMA, most are slashing salaries to avert a liquidity crisis.
"Without government support such as for example postponing loan payment deadlines or tax relief, it'll be only a matter of time until car parts businesses go bankrupt," a KAMA staffer said.
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