Korean 2014 Automobile Export: Down 0.8 percent to 3.06 Million Units
- Korea's vehicle export volume in 2014 decreased 0.8 percent year-on-year to 3.06 million units, dropping for the second consecutive year. The drop underlines the effect of the strong won and GM's decision to pull the Chevrolet brand from the European market which is exported from Korea. In addition, shrinking market scale in Russia, Ukraine, Belarus, Argentina and in some other emerging countries also dampened export.
- By type, passenger vehicles fell 1 percent to 2.92 million units, dropping for the second consecutive year. SUVs went up 9.3 percent to 1.11 million units, but passenger cars and minivans declined 6.3 percent and 7.4 percent respectively. Commercial vehicles increased 1.8 percent to 143,423 units, posting growth for the first time in three years thanks to strong truck demand, up 8.1 percent, in emerging markets.
- By automaker, Hyundai Motor went up 1.9 percent to 1.19 million units and Kia Motors rose 8.4 percent to 1.22 million units, both manufacturers maintaining export over 1 million units. Renault Samsung showed great performance as well, up 26.6 percent to 89,851 units, thanks to consignment production of the Nissan Rogue for the US market from October 2014. In contrast, GM Korea decreased 23.4 percent due to its decision to end Chevrolet sales in Europe. In addition, Ssangyong Motor dropped 10 percent as a result of weak sales in Russia.
- Export is expected to rise due to lower tariffs on automobile exports to the EU after the conclusion of free trade agreement with the economic bloc and increased export by Renault Samsung after starting consignment production of Nissan products for the US market. Export will be also aided by the full-scale remodeling of core export products. In 2015, Hyundai Motor plans to remodel the Tucson and Avante, Kia Motors the K5 and Sportage, and GM Korea the Spark. Meanwhile, the Chevrolet brand's exit from Europe and economic slowdown in some emerging countries are given as cause for concern.
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