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According to the Korea Automobile Manufacturers Association (KAMA), Korean automobile year-on-year production in September 2011 grew by 10.3% to 374,014 units, with year-to-date production showing a rise of 9.4% to 3,388,833 units, robustly backed by steady growth of sales both domestically and in global markets.
The association shows that the upbeat sales of fuel- efficient models (mini cars and HEVs) fortuitously boosted by the oil price hike and new model release effect (Grandeur, Moring, Orlando, New SM7 and Korando C), combined to spur domestic sales in September, rising by 3.8% to 125,043units. In line with this trend, 1,106,779 vehicles were sold in the first nine months of the year, up 4.2% when compared to 2010.
In spite of the increasing uncertainty of the global economy, exports jumped 14.0% to 249,342 units, triggered by the growing preference for small-sized cars with fuel-efficiency, improved quality and brand recognition on Korean cars and expanded export-oriented models, while also recording year-to-date exports rising by 13.7% with the sales result of 2,272,437 vehicles outside Korea.
South Korean auto businesses are witnessing the rapidly changing U.S auto market in the midst of controversy concerning the passage of ratification of the KORUS FTA
Amid the domestic uncertainty in winning parliamentary approval concerning the KORUS FTA (free trade agreement between South Korea and the USA), many small and medium-sized auto parts enterprises are looking forward to benefitting from the important deal.
Unlike the general optimistic viewpoint among the Korean public about the auto parts sector of the KORUS, the Korean auto component makers are struggling to discover trading benefits. Some of them are already experiencing difficult business conditions, especially with the Korean conglomerates who are putting pressure on the comparatively weaker businesses.
Given that the majority of auto-related Korean businesses will be enjoying the benefits of the KORUS FTA, most of the global giant local car makers including Hyundai Motor Group are not anticipating great benefits since they are already operating their strategic global factories and branches, in consideration of the intensifying U.S. auto market.
Regardless of the giant pact, Korean auto makers are rushing into globally promising auto markets including Russia. Hyundai Motor Company, South Korea’s biggest carmaker, regained the first place in the Russian imported car market, for the first time in 19 months.
Hyundai posted the biggest sales of 15,317 units in the sales of passenger and small commercial cars among several foreign carmakers in the Russian market last month, according to the Association for European Businesses (AEB) report.
In recognition of its locally oriented customized overseas marketing endeavors in the emerging potential areas, the global top-level automaker recorded the highest sales in the Russian imported car market for the first time in 19 months since its competition with Chevrolet in February 2010.
Some South Korean auto part suppliers are eyeing the upcoming Automechanika Shanghai 2011
In the midst of considerably changing global auto component market, some South Korean auto part suppliers are eyeing the upcoming Automechanika Shanghai 2011, which will be held from Dec. 7th through Dec. 10th.
With their various spectrums of highest-quality auto parts including brake pads, brake disc & drum grinders, refrigeration units, various safety belt shafts, LCD monitors, etc., the Korean small and medium-sized auto ventures will be seeking ways to not only bolster the sales of their prominent auto products worldwide, but also expand their global presence.
Sangsin Brake Co., Ltd. has recently released its flagship high-level brake pad, under the brand name of “HARDRON,” innovatively made after the precision process of removing noise and black dust, major contributors of defected brake friction materials. Auto Pro-Up C o., Ltd. has specialized in producing brake disc & drum grinders, with the long-accumulated and independently developed technology.
KAPAS Co., Ltd. produces all kinds of refrigeration units (transport temperature control system) for vans, trucks and trailers, which are now widely preferred by customers not only domestically, but also overseas, as they have competitive points of considerable cost-saving benefits and suitability in the application of freezing and refreshing.
Huvitech, launched in 2006, has been consistently involved in manufacturing and exporting of visual communication systems, such as rear view camera/monitor/DVR systems, security systems, medical systems and industrial systems to many overseas nations.
The Korean automotive industry is domestically seeing remarkable growth
The Korean automotive industry is domestically showing a remarkable performance. Especially, the exports of automotive products, including parts and components in the Busan region, is driving the region’s entire economic growth, posting an annual average growth of 11.7 percent over the past 10 years.
The region’s auto industry, consisting of finished car and automotive parts & components has surpassed the shipbuilding industry in terms of contribution to the economy of the province.
As of 2010, the proportion of finished cars (12.9 percent) and automotive parts & components (5.2%) has exceeded that of ships & related parts with 13.5% in the exports of the Busan area.
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