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Automobile Industry Outlook for 2015
December 8, 2014 – South Korea’s car output is expected to increase in 2015, according to an industry outlook jointly released today by the Ministry of Trade, Industry and Energy (MOTIE) and the Korea Automobile Manufacturers Association (KAMA).
The global automobile industry is showing signs of recovery thanks to US and European economic recovery and steady economic growth in China and India. However, demand could still shrink due to economic recession in emerging markets, the MOTIE said in its statement.
In 2015, the country’s vehicle production and exports are expected to rise, thanks to continued growth in exports to North America, also a reduction in tariffs on cars, and high domestic demand for replacement of older vehicles. Under the South Korea-EU FTA, tariffs on vehicles with emissions of less than 1500cc will be additionally reduced from 3.3 percent to 1.6 percent from July 2015.
2015 Automobile Industry Outlook
(Thousand units, US$ hundred million, %)
|
2013
|
2014 (Estimated)
|
2015 Outlook
|
|
Growth
|
|
Growth
|
|
Growth
|
Domestic production
|
4,521
|
-0.9
|
4,450
|
-1.6
|
4,500
|
1.1
|
Overseas production
|
4,108
|
13.0
|
4,400
|
7.1
|
4,600
|
4.5
|
Exports
|
3,089
|
-2.6
|
3,050
|
-1.3
|
3,100
|
1.6
|
|
(Value)
|
486
|
3.0
|
496
|
2.0
|
512
|
3.2
|
Auto parts (Value)
|
261
|
6.0
|
265
|
1.6
|
270
|
1.9
|
Domestic sales
|
1,540
|
-0.1
|
1,610
|
4.2
|
1,650
|
2.5
|
|
Domestic cars
|
1,383
|
-2.7
|
1,400
|
1.2
|
1,400
|
0.0
|
Imported cars
|
156
|
20.0
|
210
|
29.7
|
250
|
19.0
|
Source: KAMA
Estimated figures show that domestic sales of finished cars increased 8.2 percent in the year to last month thanks to restyling and strong sales of imported cars.
Vehicle output and exports decreased 4.7 percent and 4.0 percent respectively in November from a year due to market uncertainty in Eastern Europe and General Motors’ withdrawal of its Chevrolet brand from Western Europe.
Auto parts sales fell 9.3 percent in November from a year earlier due to continued recession in emerging markets.
Car Industry Trend for November, 2014
(Unit: %, US$ million)
|
Nov. 2014
|
Month-on-month
|
Year-on-year
|
Jan.-Nov. 2014
|
Year-on-year
|
Production
|
406,491
|
11.5
|
-4.7
|
4,090,162
|
-0.3
|
|
Domestic sales
|
144,909
|
4.5
|
8.2
|
1,488,414
|
6.1
|
|
Domestic cars
|
124,514
|
3.1
|
3.8
|
1,294,260
|
2.8
|
|
Imported cars
|
20,395
|
13.6
|
46.4
|
194,154
|
34.6
|
|
Exports
|
274,757
|
13.9
|
-4.0
|
2,760,040
|
-1.4
|
|
(Value)
|
43.5
|
-15.0
|
-5.5
|
441.9
|
0.6
|
Auto parts (Value)
|
19.5
|
-20.4
|
-9.3
|
24,325
|
2.3
|
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