Korean Automotives’ Impressive Presence in the U.S. Market

South Korea’s car makers are establishing an impressive presence in the North American car market amid cut-throat competition with their Japanese rivals. Among them, Hyundai-Kia’s performance is most prominent.

The global leading carmaker Hyundai-Kia has ranked first in the sub-compact, compact and mid-size car markets for the second consecutive month in the United States in July. Hyundai-Kia has topped the U.S. sub-compact car market for four consecutive months in terms of sales volume by selling 8,903 sub-compact cars, according to reliable automotive data providers. It sold 34,791 compact cars in July, claiming the top position in the US compact car market for the January-July period this year. In the U.S. midsize car market, Hyundai-Kia outperformed its Japanese rival Toyota for the second month by selling 34,295 cars.

Hyundai-Kia’s feat in the U.S. is meaningful in that it was achieved as sales of its Japanese rivals including Toyota, Honda, and Nissan started bouncing back from sluggish performance induced by a great earthquake in Japan.

The nation’s vehicles production in July 2012 decreased by 9.2% compared with a year before to 355,627 units due to partial strikes in major makers coupled with reduced operating days. The growth pace has slowed for the year-to-date production, with only a 1.5% growth producing 2,735,943 vehicles.

Despite new model introduction such as New Santa Fe and K9, domestic sales in July 2012 shrank 4.6% at 122,086 units, owing to worrying global economy by financial crisis in Euro zone and contracted consumer confidence. Home sales during the first seven months fell by 5.8% year-on-year registering 817,202 units.

Exports in July drop by 10.4% shipping 238,824 units under the rising uncertainty over the global economy by financial turbulence in EU and supply shortage by makers’ strikes. Year-to-date exports recorded 1,939,576 vehicles with a 7.3% rise over a year earlier.

Amidst of the fierce competition in the U.S. auto market recently started making its solid form for all South Korean auto makers and auto part manufacturing companies with global rivals including some Japanese car makers completing their warreadiness against Korean counterparts, South Korean auto part manufacturers are scheduled to participated in the upcoming AAPEX 2012, where Korean companies are to examine the possible expansion of their presence in the market. Arranged by KOTRA, this year Korean booths are expected to deliver excellent business results.

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