S. Korean auto production sinks 25.9 pct in April

SEOUL, May 7 (Yonhap) -- South Korea's production of cars, trucks and buses
dropped 25.9 percent in April from the same month last year, hurt by sluggish
exports and weak sales at home, producers said Thursday.
Output declined to 269,263 units, marking an 11th consecutive monthly fall, the
Korea Automobile Manufacturers' Association said in a statement.
A 37-percent plunge in exports, especially weaker shipments to the United States
and Europe, and slumping demand at home were behind the decline, the association
said. Local sales fell 14.9 percent last month.
Analysts, however, say domestic sales may begin rebounding as the South Korean
government cut taxes by 70 percent for new vehicles to spur demand. Many would-be
buyers have been reportedly waiting for the tax benefits.
In the first four months of this year, production dived 30.3 percent from the
same period last year to 957,303 vehicles, the association said.
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