Korea expects vehicle production of 4.7 M and sales of 1.4 M in 2013
Hyundai/Kia's overseas production surpasses domestic production for the first time
2013/04/17
- Summary
- 2012 sales in Korea decrease by 4.3% to 1.41 M; exports reach a record high of 3.17 M
- Korea-US Free Trade Agreement comes into effect
- Korean OEMs have production capacity of 5 M in Korea and 3.64 M overseas
- Hyundai Motor Group aims to sell 7.41 million units globally, up 4% y/y, in 2013
- GM Korea plans to invest 8 trillion won by 2017 and aims to double its market share to 20%
- Renault Samsung to start production of Nissan Rogue at Busan plant from 2014
- Ssangyong Motor launches its premium SUV Rexton in Indian market
- Production Forecast by LMC Automotive: Korean light vehicle production forecast
Summary
In 2012, vehicle production in Korea decreased by 2.1% y/y to 4.56 million units. While domestic sales (excluding imported cars) fell to 1.41 million units, down 4.3% y/y, exports from Korea increased by 0.6% to 3.71 million, reaching a record high. According to the 2013 outlook that Korea Automobile Manufacturers Association (KAMA) announced in the beginning of the year, vehicle production in Korea will be 4.7 million (up 3.1% from 2012), sales in Korea will be 1.4 million (down 0.8%), and exports will be 3.3 million (up 4.1%).
In the Korean passenger car market, which has been shrinking, Hyundai Motor Group (Hyundai and Kia) maintains a share of over 70%. GM Korea also has a 10% share while Renault Samsung's share decreased from 8% to 4% and Ssangyong's share grew from 3% to 4%. Imported cars led by German brands increased in 2012, accounting for 10% of the passenger car market, up from 8% in 2011.
Hyundai Motor Group's overseas production surpassed domestic production for the first time as it ramped up its production in Russia, China and Brazil.
GM Korea plans to invest 8 trillion won over five years to expand production capacities and build six new models in Korea.
Renault Samsung has been experiencing sluggish sales in and outside Korea. The company will revive its business by starting the production of Nissan Rogue at its Busan plant from 2014 and raising its local content ratio to 80%.
Ssangyong, which was acquired by India's Mahindra & Mahindra in 2011, has launched its premium SUV Rexton in the Indian market. The Korean company said that it would continue to develop competitive models for global markets.
According to LMC Automotive's forecast disclosed in January 2013, the Korean light vehicle market (with a GVW of under 6 tons, including imports) in 2013 will stall at around 1.5 million units due to the fast aging population, high vehicle density and high household debt. The situation should significantly improve from 2014 onward although the increase will not exceed 3%. LMC Automotive anticipates that sales should reach 1.6 million units by 2016, and continue to retain around this level until 2019.
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