South Korea’s auto parts manufacturers’ sales are on a decline affected by the slump in sales by carmakers, a report showed on Jan. 11.
According to the report from the Korea Institute for Industrial Economics and Trade, the overall sales of the country‘s auto parts makers slipped 3.7 percent on-year to some 73.8 trillion won (US$62.37 billion) in 2015.
Also, out of 454 auto parts makers with over 12 billion won each in annual sales, 38.1 percent or 173 had their sales shrink from a year earlier in 2015, the report added.
The auto parts makers’ profitability also suffered a setback.
The average ratio of the companies‘ operating profit to sales peaked at 6.62 percent in 2010, but has been on a steady decline since to 5.66 percent in 2011 to 4.99 percent in 2013, and again to 3.72 percent in 2015.
Also in 2015, 14.3 percent or 65 out of the 454 firms that are subject to an external audit due to their sales volume posted negative operating profits, the report said.
Such a drop in sales may have been repeated in 2016 when the combined global sales of five carmakers here shrank 1.3 percent on-year.