Growth of presence of Korean auto parts makers in major global markets

Korea’s automotive production and exports, in March, turned out to be decreased 2.6% year-on-year despite the favorable tendency of domestic sales (up 8.8%). The fall in automotive production and exports is attributable to the sluggish economy in emerging markets including Russia, the intensifying competition with Japanese companies due to the weakened yen and the oil producers’ shrinking demand by the drop in oil prices.

According to automotive industry trend data released by the Ministry of Trade, Industry and Energy (MOTIE) in March, the automotive production in the month was 414,352 units of vehicle, down 2.6% from the same period of last year. Exports amounted to 277,874 units of vehicles, also reflecting a 2.6% drop.

Growth-of-presence-of-Korean And vehicle production in February fell 12.0 percent when compared to the same month last year to 317,746 units. Excluding Renault Samsung, all major domestic automakers witness a decreased production due to sluggish exports and two less working days than the same month last year.

Domestic sales in the month were down 3.6 percent over a year before to 104,053 units, as a result of a drop in sales of small-and large-sized cars, in spite of strong demand for new and redesigned models such as Ssangyong’s Tivoli compact SUV, GM Korea’s 2015 Cruze, and Renault Samsung’s SM5 Nova.

Exports in the month dropped 13.7 percent to 211,596 units, affected by sluggish exports to emerging markets such as Russia and Latin America, fewer working days, and the economic downturn in the Middle East caused by the drop in oil prices, coupled with the aging of key models. Meanwhile, exports during the month fell slightly by 1.2% over the month last year due to big drop to CIS including Russia in spite of growth in most markets including the U.S.

Korean automotive part makers displayed their advanced solutions at Seoul Motor Show 2015, making big promotions as they expected. Maintaining good mode in the existing global big markets, the auto part makers are seeking ways to boost growth for this year in the global market.

 
 
korean-machinery.com | Blog Magazine of korean-machinery, brands and Goods

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