Korea: Hyundai/Kia expands overseas production capacity to 4.14 million in 2012
GM Korea replaces Daewoo brand with Chevrolet while SsangYong restarts under India-based Mahindra
In the January-June period of 2011, vehicle production in Korea grew by 9.7% year-on-year to 2.3 million, which is a record high for the 1st half of the year. In Korea, 740,000 vehicles were sold (up 4%) and 1.54 million were exported (up 15.1%). According to the 2011 forecast that the Korea Automobile Manufacturers Association (KAMA) announced at the end of 2010, vehicle production in Korea will be 4.4 million (up 3% from 2010), sales in Korea will be 1.55 million (up 5.8%), and exports will be 2.9 million (up 4.6%). In 2010, vehicle production in Korea posted a record high of 4.27 million (up 21.6% from 2009).
In 2010, five major OEMs in Korea increased their production. Hyundai and Kia in the Hyundai Group registered a record production in Korea of 3.13 million; they produced 2.61 million overseas. Overseas production capacity surpassed 3 million, which is expected to increase to 4.14 million at the end of 2012.
In March 2011, GM Korea changed its company name from GM Daewoo. With this move, the company replaced the Daewoo brand with Chevrolet in Korea. In January-June 2011, the company sold about 70,000, ranked third in terms of sales in Korea following Hyundai and Kia.
In 2010, Renault Samsung increased sales in Korea as well as exports. It produced a record 280,000. In January-June 2011, sales in Korea declined due to more severe competition in Korea and to a shortage of parts following the Great East Japan Earthquake, but exports continued to increase.
In March 2011, India-based Mahindra & Mahindra acquired a 70% share of SsangYong Motor, which had been pressing ahead with corporate rehabilitation. Based on the financial power and capability for market development of M&M, SsangYong Motor says that it will enhance its presence as a global SUV manufacturer.