Demand for fuel-efficient cars boosts May car sales in South Korea

Growing demand for fuel-efficient cars helped drive up car sales in South Korea in May. Five automakers posted a combined 14% year-on-year increase in sales, particularly vehicles from Hyundai Motor Co. and Kia Motors Corp.  Both companies have benefited from the problems their Japanese competitors have had with obtaining car parts following the earthquake and tsunami in Japan.  Analysts expect vehicle sales to remain strong.   Hyundai, Kia, GM Korea Co., Ssangyong Motor Co. and Renault Samsung Motors Corp. sold a combined 638,110 units in May 2011.  A recent labor protest at Yoosung Enterprise Co. affected sales at both Hyundai Motor Group and Kia, both of which use engine parts from Yoosung.  (June 1, 2011)