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Market Trends & Demand
South Korea’s domestic automobile production declined 2.7% to 4.1 million units in 2017. The country’s automobile exports fell almost 3.5%, representing consecutive years of negative growth. The weak performance by major auto manufacturers were largely due in part to stagnating local demand exports.
Although in its relatively early stages, South Korea’s electric vehicle (EV) market is gradually growing, along with strong interest in technologies and solutions pertinent to autonomous vehicles (AVs). This is evident in the country’s policies. South Korea is making strong efforts to expand the deployment of electric vehicles (EVs), with EV deployment targets of 350,000 EVs by year 2022. Different levels of national and/or local government offices can offer subsidies to incentivize the purchase of EVs, for EVs that meet certain criteria and are eligible. Moreover, South Korea is at a relatively early stage of developing autonomous vehicles (AVs) with plans to commercialize Level 3 AVs by year 2020.
Automotive parts and components demand:
Aftermarket Summary
South Korea relies heavily on genuine spare parts, versus non-genuine spare parts such as certified aftermarket replacement auto parts. Thus, under a new policy, drivers under own damage car insurance can receive 25% cash back from insurance providers, when/if aftermarket replacement parts are purchased.
Electric Vehicles Market
South Korea is expanding efforts to deploy and promote electric vehicles (EVs) and hydrogen-fueled vehicles. Moreover, by year 2025, Seoul city plans/targets to expand electric buses to 3,000.
Heavy Duty Market
Doosan Infracore, Hyundai Construction Equipment, Volvo Construction Equipment, etc. are companies engaged in the supply and distribution of heavy construction equipment. As of 2017,
Best Prospects for U.S. Exports
market trends