Korean makers’ expectation towards global potential markets

Korean makers’ expectation towards global potential markets to continue riding on the recovery mode on demand from global regional markets

Korea’s vehicle production in July climbed by 22.4% compared with the same month last year to 409,283 units. In spite of reduced consumer confidence and growing demand for imported cars, domestic sales in July rose by 1.9% over a year earlier, due to the recently introduced models such as the redesigned Carnival minivan and the diesel-powered version of the sedans Grandeur and SM5.

Exports in July increased by 16.0% compared with the same month last year to 266,741 units, due to the expansion of supply partly with the effects of tariff lowering on Korean cars exported to the EU through the Korea-EU FTA.

Korean car component makers are hoping anticipated special orders from the United States will enter a cycle of recovery seen early this year in earnest. In fact, America’s three top car makers – GM, Ford, and Chrysler – already officially expressed their intention to expand the import of the automotive parts made by Korean companies. Korean makers’ advances into the giant market are thus expected to be active.

The growing popularity of Korean makers-made automotive parts is based on the enhanced quality of those enough to substitute the global high quality products, even also those from Germany, Japan. And the possibility of cost savings by the tariff-cuts benefits by the Korea-U.S. FTA backs up such anticipation.

A spokesperson for Korea’s automotive part industry recently said “Recently the exports of Korean-made products to the United States market is growing riding on the activation of the automotive market by the recovery mode of the economy. Especially as Korean products are high quality when compared to prices, inquiries regarding Korean items are more intensive than those by other foreign makers.”

Korean automakers’ recent active moves to advance into overseas markets are gaining attention. Representatively, Hyundai Motor will be building car production plants in Chongqing in central China and Cangzhou city in Hebei province near Beijing. The automaker’s annual output in China is expected to jump to 1.65 million units from 1.05 million and it would thus be able to more swiftly respond to the regional demand.

 
▶Disc brake caliper
▶Automotive gas spring
▶Cold-drawn steel tube
▶Carbon Canisters
▶Cooling System
▶Automotive heat exchangers, compressor parts

 
 
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