In 2017, the automotive industry in South Korea is the sixth largest in the world by production. South Korea has always been one of the world’s top automotive manufacturing countries and one of the largest automotive exporters since the 1990’s, driven by the top 5 South Korean car brands. Today, South Korea’s automotive industry remains one of the most important sectors in the country and a key factor for South Korea’s economic growth, contributing over 10% to the nation’s total GDP every year. Despite the continuous ups and downs in the automotive production and auto sales over the last few years, the country still holds its position as a leading automotive industry player in the world.
South Korea Automotive Industry Statistics
South Korea has been one of the fastest growing nations in the world when it comes to car production; global car sales statistics have gradually increased in recent years. According to recent data revealed by OICA (The International Organization of Motor Vehicle Manufacturers), South Korea produced over 4.2 million auto vehicles in 2016, including about 3.9 million units of passenger cars and 0.37 million units of commercial vehicles. The total auto production makes South Korea the world’s 6th largest automotive manufacturing countries in 2016. Meanwhile, South Korean headquartered auto company Hyundai is the largest car maker in South Korea and the 9th largest auto manufacturer in the world, with an annual production capacity of 1.6 million units.
South Korean Automobile Industry Development and Prospects
When it comes to growth, Korean car brands have taken the global market by storm — especially if we are talking about automotive exports. The South Korea automotive industry has experienced dramatic expansion in the past three decades. Currently, South Korea is the 6th largest automobile manufacturing country in the world, following China, U.S., Japan, Mexico, and Germany. Among all the vehicles produced in Korea, 68.3% of the production is exported, making it one of the world’s largest automotive exporting country as well. The total value of automotive exports has surpassed US$74.7 billion, representing a 13.4% share of total national exports, making automotive the top exported products in South Korea.
In near future, sales of eco-friendly vehicles, including electric vehicles (EVs), hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and fuel-cell electric vehicles (FCEVs), are expected to be the fastest-growing auto segment in South Korea, reported by IHS. The confidence of South Korean automakers and buyers in alternative powertrains has been boosted by the government’s commitment to spend KRW150 billion (USD125.9 million) in assisting the research and development (R&D) of alternative-powertrain vehicles during 2016–20. It aims to have about 820,000 HEVs, 200,000 EVs, 50,000 PHEVs, and 9,000 FCEVs on the country’s roads by 2020. It is also looking to have nearly 1,400 EV charging stations and 80 hydrogen fuel stations in place across South Korea by 2020. As a result, South Korea is expected to be highly-influential and one of the most innovative nations going forward for the progress of electric car technology in the automobile industry.
South Korea’s automotive industry continues to boom and the nation’s leading position in the global automotive industry has also attracted significant numbers of buyers and traders from all over the world hope to source best business deals in the country. To help your automotive business stay at the peak of the industry, BizVibe can provide most effective support when it comes to sourcing products and making deals with the top car manufacturers in South Korea. The state of the automotive industry in South Korea is expected to stay promising for the foreseeable future.