2014년 1월 18일 토요일

KOREA AUTO PARTS MARKET INFORMATION

The raised status of Hyundai and Kia has resulted in the remarkable growth of Korea's parts makers, and they have been less affected than rivals by the decrease in demand for automobiles due to the global financial crisis. The development of Korea's auto parts industry has enabled domestic small-and-medium-sized auto parts manufacturers and suppliers to grow bigger and to hold core technologies via partnership with major automobile companies.
1. Current Status of the Automotive Industry
As of 2011, the global market share of Korea's auto industry ranked 5th at 5.8%; domestic demand, 12th at 1.47 million units; and exports, 4th at 3.14million units.
(1,000, %)
 200920102011
CountryProductionShareCountryProductionShareCountryProductionShare
1Japan13,79022.5Japan18,26523.3China18,41922.9
2USA7,93412.9China9,62912.3Japan8,64610.7
3China5,6969.3USA7,7439.9USA8,39910.4
4Germany5,2068.5Germany5,9067.5Germany6,3117.8
5Korea3,5125.7Korea4,2725.5Korea4,6575.8
Source: Korea Automobile Manufacturers Association
 HyundaiKiaGM KoreaSsangyongRenault-Samsung
EstablishmentDec. 1967Dec. 1944Aug. 2002Jan. 1954Sep. 2000
Location of factoriesUlsan, Jeonju, AsanGwangmyeong, Hwaseong, GwangjuGunsan, Changwon, BupyeongPyeongtaek, ChangwonBusan
Number of employees55,98432,61616,9224,7637,539
Types of vehiclesPassenger cars, SUV, CDV, buses, trucks, special vehiclesPassenger cars, SUV, CDV, buses, trucks, special vehiclesPassenger cars, CDVPassenger cars, SUVPassenger cars, SUV
Sales (KRW billion)42,77427,74215,0682,7734,981
Net income (KRW billion)4,7411,805125-112-292
Production (1,000)1,8921,584811113244
Domestic sales (1,000)68449314139109
Exports (1,000)1,2041,07665674138
Overseas factoriesChina, India, Turkey, USA, Czech Republic, Russia, BrazilChina, Slovakia, USA---
Source: Operating reports and audit reports of each company, Korea Automobile Manufacturers Association
 Combined(Automobiles and Parts)AutomobilesAuto Parts
Number of companies3,01936*2,983
Number of employees250,06979,177170,892
Production (KRW billion)113,02859,56553,463
Shipping (KRW billion)113,28459,89553,389
Value added (KRW billion)35,22318,19717,026
Overseas direct investment (USD million)672108564
Foreign investment (USD million)1934189
Equipment investment (KRW billion)4,5712,9171,654
Exports (USD million)68,42045,30023,110
Imports (USD million)10,1054,2685,837
Trade balance (USD million)58,31541,03517,276
Source: Statistics Korea, Korea International Trade Association, Ministry of Knowledge Economy, Korea Development Bank, Export-Import Bank of Korea
Note: Figures for number of companies, number of employees, shipping, and production are as of 2009, overseas direct investment and equipment investment as of 2010, and exports, imports, and trade balance as of 2011.
* Remodeling of special vehicles is included in the number of companies.
2. Current Status of the Auto Parts Industry
Encouraged by Hyundai and Kia's strong performance, the domestic auto parts industry has expanded rapidly. They have been less affected than rivals by the decrease in demand for automobiles due to the global financial crisis. This is attributable to the increase in demand for Korea's auto parts caused by the expansion of global outsourcing, and to the rise in production and overseas investment by Korean carmakers.
(KRW 100 million)
 SalesGrowth (%)
OEMA/SExportsTotal
2006360,00423,40076,704460,10810.3
2007386,40923,18592,306501,9009.1
2008368,48622,109105,271495,866-1.2
2009342,23620,53382,689445,458-10.2
2010440,79426,448121,285588,52732.1
2011516,29330,978130,912678,18315.2
Source: Korea Auto Industries Coop. Association
3. Current Status and Trends of Foreign Investment
Foreign-invested companies are providing core components that require advanced technologies, and their operating profit is above the industry average, thanks to the strong bargaining power of their parent companies. The number of foreign companies making investment in domestic auto parts companies is 281 as of the end of 2011. Most of the top 10 global auto parts companies are investing in Korea's auto parts industry, and each of them has multiple subsidiaries in Korea.
 -19951996-20002001-2005200620072008200920102011Total
Number of Companies89507912199878281
Investment(USD million)1,085933689126230842218373,417
Source: Korea Auto Industries Coop. Association
Foreign companiesCompany name (ratio of shareholding)Major Products
DensoDenso PS Electronics (73%)Electrical parts, air-conditioning systems
TRWTRW Steering Co. Ltd (71%)Steering equipment
Shin Han Valve Ind. Co., Ltd (50%)Engine valves
DelphiDelphi Korea (100%)Seatbelts, airbags
Daesung Electric Co., Ltd. (49.5%)Electrical parts
Packard Korea Inc. (50%)Electrical parts
Korea Delphi Automotive Systems Corporation (50%)Electrical parts, steering and brake systems
VisteonHalla Climate Control Corp. (70%)Air-conditioning systems
Dukyang Ind. Co., Ltd. (51%)Crash pads, trims
Visteon Interiors Korea Co., Ltd. (51%)Embedded modules
Johnson ControlsJohnson Controls Automotive Korea Inc. (100%)Interiors
Delkor CorporationBatteries
Johnson Matthey Ltd.Exhaust systems, catalysts
Magna PowertrainMagna Powertrain Korea Inc. (100%)Engines, gearbox parts
WIA Magna Powertrain (50%)Gearbox parts
Robert BoschRobert Bosch Korea Mechanics (100%)Fuel injection devices, electronic control units
Kefico (50%)Engine control, fuel injection devices
Bosch DieselCommon rails
Continental AutomotiveContinental Automotive System (65%)Fuel injection devices, electronic control units
Continental Automotive (100%)Dashboard modules
ValeoValeo Compressor Korea Co., Ltd. (100%)Air-conditioning compressors
Valeo Pyeong Hwa (49%)Clutches, friction materials
FaureciaFaurecia Shin Sung Co., Ltd (60%)Dashboard modules
Faurecia Exhaust Systems Korea Co., Ltd (100%)Exhaust systems
4. Korea's Auto Parts Manufacturers
Five leading companies in the Korean auto parts industry recorded sales of over KRW 1 trillion in 2011: Hyundai Mobis (KRW 26.29 trillion), Hyundai WIA (KRW 6.39 trillion), Mando (KRW 4.56 trillion), Halla Climate Control (KRW 3.31 trillion), and Hyundai Powertech (KRW 2.8 trillion).
(KRW billion)
NoSupplierAmount to HD/KiaTurnoverNo of EmployeesProducts
1HD Mobis7,00113,6956,244Module&System
2HD WIA3,4404,4352,156T/M, Axle
3HD Dymos1,0301,1641,071P/T, Seat
4Mando9842,1103,958System Supplier for Steering, Brake, Suspension
5HD Powertech9731,9801,351T/M
6Halla Climate Control8131,7971,741Climate Control System
7Korea Delphi7949921,940System Supplier for Steering, Brake, T/M
8Deokyang559582721Crash Pad
9Heesung Catalysts504842306Catalyst
10Kyoungshin4957781,116W/H, Junction Box
11Kefico4529401,052Engine Control Unit, Powertrain Control Unit
12S&T Dawoo425649927Chassis, Airbag, Engine Parts
13Sejong424649927Muffler, Catalytic Converter
14Johnson Controls423300476Seat
15Faurecial Exhaust352N.A353EX. Manifold, Catalytic Converter
Note: Ranking is based on delivery.
Source: Korea Automobile Manufacturers Association
5. Promising Investment Destination in Auto Parts Industry
Gyeongsangbuk-do can nurture the auto parts manufacturing sector based on its advantage in the materials industry; Daegu is suitable for smart vehicles; Gyeongsangnam-do can focus on auto parts related to the machinery industry; Ulsan is appropriate for high-performing parts related to large-scale module production; and Busan can penetrate the niche market in the basic components sector. Daegu plans to construct a proving ground in the Technopolis to support auto parts companies to develop new parts.
Chungcheongnam-do is serving as a new hub of research and development along with the Seoul Metropolitan Area, and design and convenience parts sectors have bright perspectives in the region. High-performing light material parts and environmentally friendly parts are promising in Jeollabuk-do as they can tap into the advantages of a region that accommodates the largest scale of production facilities for commercial vehicles in Korea and has advanced infrastructure related to the materials industry. Molding is a promising sector in Gwangju, as it is closely related to the production and processing of auto parts.
map
6. Successful Foreign Investment Case
Bosch is the world's largest producer of auto parts and technologies, manufacturing powertrains, chassis, gasoline engines, diesel engine systems, and safety systems that are the core parts of automobiles. In Korea, Bosch is producing and selling auto parts, aftermarket products, industrial automation products, electric tools, car accessories, and security technologies.
Bosch companies in Korea include Robert Bosch Korea, Bosch Electrical Drives, ETAS Korea, and Bosch Rexroth Korea and such joint ventures as Doowon Precision Industry, KEFICO Corporation, and SB LiMotive. The total number of Bosch employees in Korea exceeds 3,600, including workers of the JVs. The company is playing an important role in R&D, with more than 300 researchers and research institutes equipped with cutting-edge facilities for testing and application. Bosch earned KRW 2.2 trillion in sales in 2010, making the country a strategically important nation in the Asia Pacific region.