Despite sluggish economy, RV sales boom.

(From The Korea Herald)

By Kim Hyun-chul High-flying oil prices have dealt a further blow to Korea's car market, already hit by depressed consumer demand and a slumping economy.

But sales of sport utility vehicles and minivans are gaining momentum, as buyers who traditionally preferred sedans have become more interested in snazzy models that run on cheaper and more efficient diesel fuel.

To catch up with the trend, some major domestic carmakers are pushing new models onto the market in an attempt to lure customers back to their showrooms and jump-start the stalled demand.

According to the Korea Automobile Manufacturers Association, sport utility vehicles and minivans accounted for 29.9 percent of all new cars sold in 1999. But this surged to 42.5 percent in 2002, before dipping slightly to 41.9 percent last year.

In April this year, carmakers sold 34,327 sport utilities and minivans, the highest monthly segment sales ever on the domestic market, accounting for more than 44 percent of new car sales. Although May figures are not available yet, experts anticipate such vehicles will likely take a greater portion of auto sales, boosted by relatively brisk sales of some new models.

Experts attribute the rising popularity of the segment mainly to the fact that the vehicles run on diesel, which is about 36 percent cheaper than gasoline and provides better mileage.