Seoul, Jan 2: Korea's largest auto maker, Hyundai Motor Co, said on Wednesday it has posted record sales in 2001, powered by new models that lured customers domestically as well as in the United States and was helped by slashed consumption taxes.

Other Korean car manufacturers also reported higher sales, but bankrupt Daewoo Motor suffered a sharp fall.

Analysts predicted sales by Hyundai and affiliate Kia Motors Corp, as well as smaller rivals Ssangyong Motor Co and Renault Samsung Motors Inc, would increase further this year.

"Domestic sales will definitely rise five to 5.5 percent this year, driven by high-margin vehicles due to the cut in special consumption taxes," said an auto analyst at Samsung Securities Mark Barclay.

Hyundai said its sales last year rose 9.3 per cent to a record 1.6 million vehicles and projected sales this year to rise to 1.68 million vehicles. It said in a statement new vehicles such as the Tuscani Sports coupe, sold as the Tiburon in the United States, fueled 2001’s better sales.

Strong performers also included its La Vita mini van, Sonatamid-sized sedan and Santa FE Sports utility vehicle (SUV).

Affiliate Kia Motors Corp, which plans to unveil the Sorento SUV this year, saw 2001 sales rise 7.5 per cent to 990,804 vehicles.

"While Hyundai will continue to show strong sales figures this year, the momentum in sales growth will shift to Kia with the release of the Sorento," said Mr Barclay.

He said a consumption tax reduced last November to encourage spending will make SUVs and other high-margin vehicles more attractive.

Kia forecast sales in 2002 would rise to 962,000 vehicles from 907,000 in 2001.

Ssangyong Motor, one of the nation’s smallest auto makers, said its 2001 sales rose to 125,668 vehicles from 116,273 on brisk sales of its Musso SUVs and Korando jeeps, which run on cheaper diesel fuel.

Ssangyong was rescued from financial problems in December when creditors agreed to a one trillion won ($761.6 million) debt-to-equity swap and $200 million in new funds.

"This year we will definitely see smaller players gaining a larger market share," Mr Barclay said.

Korea’s smallest auto maker, unlisted Renault Samsung Motors Inc, said its 2001 sales rose to 70,788 units, surpassing a target of 68,000 units.

The auto maker has forecast sales of 89,000 vehicles this year, company spokesman Ha Tae-eung said.

That would help Renault break even in 2003, a year ahead of schedule, vice president of sales and marketing Oh Jeong-hwan said. The company was launched in September 2000. But financial woes at third-ranked Daewoo took a heavy toll on 2001 sales, which fell to 448,613 vehicles from 756,747 in 2000.

A memorandum of understanding signed last September with Daewoo creditors called for General Motors to buy four Daewoo plants and other assets.

— Reuters