2017.9.26 Overview of Korean Automobile Industry
1. The Status of Korean Automobile Industry 2. The Status of Korean Auto Parts Industry
Introduction of KAMA Korea Automobile Manufacturers Association (KAMA) : Established in 1988 Non-profit organization Representing the interests of auto makers in Korea. KAMA s major roles : - Representing the interests of Korean automakers - Providing constructive solutions to public policies related to environment, vehicle safety-issues and consumer satisfaction. - Supporting international cooperation. - Leading public opinion on the automotive industry. - Producing auto-related statistics and information. - Organizing Seoul Motor Show biennially since 1995. 3
KAMA Members (Year 2016) Employment (persons in 2015) Production (thousand units) Domestic Sales (thousand units) Exports (thousand units) Overseas Production (thousand units) 66,404 34,121 16,236 4,773 4,220 1,680 1,557 580 156 244 648 528 167 102 111 1,009 997 416 52 146 3,186 1,467 - - - 4
Chapter 1. The Status of Korean Auto Industry
Auto Plants in Korea (2016) Total 4.7 million (UNITS) 330,000-394,000-555,000-157,000-250,000-243,000-235,000-1,430,000 - - 20,000-5,000-107,000 300,000-390,000 107,000 200,000 10,000 6
Transplants(2016) Offshore production capacity of Korean car makers Czech Nosovice 330,000 Slovakia Zilina 300,000 Russia St. Petersburg China Sichuan China Beijing China Yancheng 155,000 1,050,000 900,000 USA Alabama 370,000 USA Georgia 340,000 200,000 Mexico Nuevo Leon 4.9 million units in total Turkey Izmit 200,000 India Chennai Vietnam Hanoi 650,000 11,000 Brazil Piracicaba Timeline of overseas plants in operation 1996 Vietnam 1997 Turkey 1998 India 2002 China 2005 USA 300,000 2006 Slovakia 2008 Czech 2009 USA 2010 Russia 180,000 2012 Brazil 2014 China 2016 Mexico 7
Evolution of Korean Auto Industry (Thousand Units) Production Domestic Sales 8
Production & Sales of Korean auto industry (Thousand Units) Production Domestic Sales Imports Exports Transplant Production 14 4,524 1,662 15 4,556 1,834 16 4,229 1,823 219 (13.2%) 284 (15.5%) 265 (14.5%) 3,061 4,414 2,974 4,411 2,622 4,653 17F 4,170 1,800 270 2,640 4,300 9
Production & Sales by Maker 1) Production 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 4,562 4,521 4,525 4,556 154 119 130 144 152 140 205 146 786 783 629 615 1,586 1,599 1,712 1,718 (Thousand Units) 4,229 244 156 580 1,557 1,000 500 1,905 1,852 1,876 1,858 1,680 2012 2013 2014 2015 2016 Hyundai Kia GM KOREA Ssangyong RenaultSamsung Others * Others include Tata Daewoo, Daewoo Bus 10
Production & Sales by Maker 2) Domestic Sales 2,000 1,800 1,600 1,532 1,544 135 1,400 162 60 46 59 62 1,200 144 149 1,000 800 476 456 600 1,662 219 62 67 155 465 (Thousand Units) 1,834 1,823 284 265 55 94 96 102 153 167 521 528 400 200 660 642 677 703 648 2012 2013 2014 2015 2016 Hyundai Kia GM KOREA Ssangyong RenaultSamsung Import Others Total 11
Production & Sales by Maker 3) Export (Thousand Units) 3,500 3,000 2,500 2,000 1,500 3,171 3,089 3,063 94 72 79 71 71 90 656 630 477 1,102 1,132 1,227 2,974 149 45 463 1,157 2,622 146 52 416 997 1,000 500 1,242 1,173 1,195 1,156 1,009 2012 2013 2014 2015 2016 Hyundai Kia GM KOREA Ssangyong RenaultSamsung Others Total 12
Domestic Passenger Car sales by Type & Segment (%) TYPE SEGMENT 100% 90% 80% 70% 2.6 4.2 4.5 5.8 6.1 7.3 6.5 20 19.3 21.8 25.8 27.8 34.1 33.8 100% 90% 80% 70% 18.1 22.6 19.1 19.4 21.9 23.8 26.8 60% 50% 60% 50% 43.2 39.3 42.6 43.7 41.7 40.6 35.7 40% 30% 20% 77.4 76.5 73.7 68.4 66 58.6 59.7 40% 30% 20% 25.4 22.9 21.1 20.9 21 22.5 24.7 10% 0% 2010 2011 2012 2013 2014 2015 2016 10% 0% 13.2 15.3 17.3 16 15.4 13.1 12.9 2010 2011 2012 2013 2014 2015 2016 Sedan SUV CDV MINI SMALL MEDIUM LARGE *Mini: below 1.0L, Small: 1.0-1.6L, Medium: 1.6-2.0L, Large: above 2.0L) 13
Domestic Passenger Car sales by Fuel type (%) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 12.6 11.2 12.5 12.5 10.3 8.1 7.2 18.5 20.7 27.0 32.4 38.6 44.7 39.7 68.1 66.5 57.5 52.7 48.5 44.5 48.7 2010 2011 2012 2013 2014 2015 2016 Gasoline Diesel LPG CNG HEV EV Others 14
Major Issues of Korean Auto Industry Environmental Issues Environment regulations strengthening amid global warming, shortage of fossil fuels, and worsening air pollution. Developing eco-cars are necessary for higher competitiveness and survival 1) Eco-Cars(HEV, EV, FCEV) : Government-led supporting plans to boost Eco-car sales - Tax incentives*and subsidy scheme allowed for Eco-car purchases * Tax cuts are provided for Individual excise tax and acquisition tax ** Amount of tax cuts and subsidy varies among Eco-car types and regions 2) Vehicle Emissions regulations : Strengthening regulations for exhaust emissions and CO2 regulations - Diesel cars: WLTP to be fully implemented in 2019 - CO2: Average CO2 emissions target for new PC to reach 97g/km in 2020 15
Major Issues of Korean Auto Industry Eco car sales trend in Korea Eco-car sales marked all-time high in 2016 due to sales increase in HEV and EV. - More choices of HEV and EV models released in market led to boost in sales of eco car as a whole. 2011 2012 2013 2014 2015 2016 (units) Total 19,652 37,120 29,674 35,831 41,959 67,387 HEV 19,371 36,603 29,060 34,516 39,014 62,210 EV 281 517 614 1,315 2,945 5,177 * Newly registered vehicles(domestic and imported cars) 16
Major Issues of Korean Auto Industry Technological Issue(Autonomous Vehicles) Announcement of government support programs for Autonomous vehicle( 15) - Preparing for regulatory environment and infrastructure for commercialization of selfdriving cars - Fostering parts suppliers with core technologies in driverless car sector Hyundai presenting its automation level 4 IONIQ at CES 2017 LiDAR (3) Camera Array(3) GPS Antenna Blind Spot Sensors (Radar) Smart Cruise Control Radar 17
Chapter 2. The Status of Korean Auto Parts Industry
Suppliers in Korea Number of Tier 1 Suppliers Year Large Medium/Small* Total 2016 242 616 858 2015 241 642 883 * Either the number of employees under 300 or capital asset below 8 billion won. Number of Suppliers by Auto Maker Year Hyundai Kia GM Korea Ssangyong Renault Samsung Total 2016 346 334 318 236 190 858 2015 348 333 317 237 213 883 19
Global OEM Parts Suppliers (2016) Rank Company Country 2016 Turnover (OEM only) 2015 Turnover (OEM only) 2015 Rank 1 BOSCH Germany 46,500 44,825 1 2 ZF Germany 38,465 29,518 5 3 MAGNA Canada 36,445 32,134 3 4 DENSO Japan 36,184 36,030 2 5 CONTINENTAL Germany 32,680 31,480 4 6 AISIN Japan 31,389 25,904 7 7 HYUNDAI MOBIS (Unit : Million US$) Korea 27,207 26,262 6 8 FAURECIA France 20,700 22,967 8 9 LEAR CORP U.S.A. 18,558 18,211 10 10 VALEO SA France 17,384 15,842 11 34 HYUNDAI WIA Korea 7,043 7,480 29 46 MANDO Korea 5,057 5,560 45 48 49 56 HYUNDAI POWERTECH HANON SYSTEMS HYUNDAI DYMOS Source : Automotive News Korea 4,920 4,554 50 Korea 4,915 4,912 - Korea 3,958 3,202 65 20
Specialized & Non-Specialized Auto Parts Company (2016) (Units) Specialized Company *Non-Specialized Company Total No. of Companies No. of Employees Medium & Small 819 72.7% 39 858 186,006 107,140 293,146 Remarks) Non-specialized companies include companies for electronics, batteries, tires, textiles, chemicals and so on. 21
Sales Volume (2016) OEM OEM 61.5% 65.7% Export Export 34.2% 29.7% Aftermarket A/S 4.6% 4.3% 0 200,000 400,000 600,000 800,000 (Unit : Billion Korean Won) OEM Export Aftermarket Total 2016 46,678 25,951 3,268 75,897 22
The Amount of Supply & Domestic Turnover of Auto Makers (2016) (Unit : Billion Korean Won) Car Makers Domestic Turnover of Car Makers (A) Amount of Supply (B) B / A (%) Hyundai 41,714 20,131 48.3 Kia 31,642 16,772 53.0 GM Korea 12,234 5,227 42.7 Renault-Samsung 6,248 2,338 37.4 Ssangyong 3,626 1,645 45.4 Tata Daewoo 1,032 339 32.9 Zyle Daewoo Bus 434(e) 226 52.2 Total 96,930 46,678 48.2 23
Export & Import (Unit : Million US$) 24
Top 10 Countries by Export (2016) Auto-Parts Export Volume (Unit : Million US$) Rank 1 2 3 4 5 6 7 8 9 10 Country U.S.A. China Mexico Slovakia India Czech Japan Russia Brazil Vietnam Export 6,751 5,673 1,684 1,111 953 944 914 728 518 441 25
Number of Korean Auto-parts Plants in Overseas (2016) (Units) Poland (17) Slovakia (20) Russia (14) U.S.A. (89) Czech (13) Turkey (10) China (289) Mexico (34) India (57) Brazil (14) Others (68) As of 2016, total 625 factories are operating in overseas (KAICA members only). - Each supplier has average 3.7 plants. 26
Korea s Free Trade Agreements EU EFTA TURKEY GCC KOREA-CHINA-JAPAN CHINA JAPAN INDIA VIETNAM RCEP SINGAPORE ASEAN INDONESIA AUSTRALIA CANADA US MEXICO COLOMBIA PERU CHILE 2004 2005 2006 2007 2008 2010 2009 2011 2012 2013 2014 2015 2016 FTAs in Effect (15) Korea-Chile FTA Korea-Singapore FTA Korea-EFTA FTA Korea-ASEAN FTA Korea-India CEPA Korea-EU FTA Korea-Peru FTA Korea-US FTA Korea-Turkey FTA Korea-Australia FTA Korea-Canada FTA Korea-China FTA Korea-New Zealand FTA Korea-Vietnam FTA Korea-Colombia FTA FTAs Concluded (1) Korea-Central America FTA FTAs under Negotiation (4) Korea-China-Japan FTA RCEP Korea-Ecuador FTA Korea-Israel FTA FTAs Pending (4) Korea-Mexico FTA Korea-GCC FTA Korea-MERCOSUR FTA Korea-EAEU FTA 27
Useful websites NAME websites Finished Automobile KAMA http://www.kama.or.kr Auto Parts KAICA http://www.kaica.or.kr Imported Vehicle KAIDA http://www.kaida.co.kr AutomotiveTechnology (Research) KATECH www.katech.re.kr Business Information Invest Korea www.investkorea.org www.bizinkorea.org 28
Danke schön!!! email: csh0528@kama.or.kr