Korean Automobile Industry

E XPORTSA 29.0% leap attributed to recovering global demandand improved competitiveness of Korean vehiclesExports in 2010 rose 29.0% selling 2,772 thousand vehicles outside, fueled by theoverall rebound in auto demand around the globe from US to emerging nations,except West Europe where auto demand was on the decrease due to dampenedeconomy, enhanced quality and consumer reliability on Korean vehicles, increasednew model introductions, improved price-competitiveness due to strong Japanese yenand elevated brand image through World-Cup marketing.Exports turned positive to the considerable level of growth from the depressive pasttwo years, which is attributable to the increase of auto demand in US, the largestmarket, market-diversification strategy to emerging nations covering East Europe,Middle East and Latin America, and stable supply thanks to strike-free collectiveagreement.In exports by region, all the areas except Africa, were on the growth. Despite theexpansion of overseas production, exports to North America grew by 11.4% thanks tothe improved quality, reliability and competitive price and those to Europe shot up34.6% spurred by bullish demand in Russia, UK, Spain and Hungary coupled withnew model introductions. In the meantime, due to the high growth-rate of localeconomy and introduction of export-oriented models, exports to Middle East and LatinAmerica soared 39.8% and 57.3% respectively.In the major five makers, each of maker showed more than double-digit growth ratesustaining its growth pace. Hyundai and Kia, despite the expansion of overseasproduction and demand-contraction in West Europe, jumped 17.7% and 25.0% eachdriven by increased new models such as YF Sonata, Tucson ix, Sportage R andSorento R combined with price-advantage over strong yen. GM Korea, with stabilizedmanagement of GM as well as solid exports of Lacetti and Winstorm, was up 42.3%.Renault Samsung, encouraged by new-market development to China and MiddleEast in line with ballooning exports of QM5 and New SM5, surged 106.1%.Ssangyong skyrocketed 274.6%, boosted by new-market creation including MiddleEast, resuming shipment to Russia and start-up of Korando C.12Korean Automobile Industry 2011