NewswireToday - /newswire/ -
Singapore, Singapore, 2012/07/23 - A research project to help Australian exporters in the Korean market sawthe Australian Trade Commission (Austrade) working with Spire Research and Consulting in Korea to develop a report on opportunities and trends in the Korean Automotive Market.
The report on the Korean Automotive Market 2010 – Opportunities and Trends – was commissioned by the Australian Trade Commission (Austrade), partnering with Spire Research and Consulting in Korea to develop the market research findings.
Some interesting highlights from the report include the following:
The importance of automotive industry
The Korean automotive industry, a growth driver in the Korean economy, is significant for exports, value-added taxes and employment. It accounts for 9.9% of the manufacturing sector’s total production, 9.1% of employment, 18.1% of value-added tax and 12.8% of exports (US$49, 063 million).
The Korean automotive industry comprises seven major automakers, 889 module makers and 1st tier parts manufacturers, over 3,000 2nd and 3rd tier parts makers, material suppliers and supporting firms.
The multiplier effects emanating from the automotive industry are stronger than those from the shipbuilding or electronics industry. This is mainly due to the strong interconnectivity between parts and vehicle manufacturers.
Opportunities and threats of the Korean automotive industry:
Korea is vulnerable to overseas market changes as it relies heavily on exports. In 2009, Korea exported 61.3% of the automobiles produced in Korea.
- Overseas sales of Korean automobiles were expected to increase in 2010 due to aggressive marketing and the Toyota recall scandal in the U.S.A.
- The completion of structural reforms among global automakers such as General Motors may stabilize these firms, posing increased competition to Korean vehicle manufacturers.
- Stricter environmental regulations will accelerate demand for Green and fuel-efficient vehicles such as hybrids, electric vehicles and intelligent vehicles, which require large investments in Research & Development. Korean automakers need more focus and investment in this area to win the race.