GENIVI 2015, Seoul

Evolution of Korean Auto Industry

(Thousand Units)
5,000
Production
4,500
Average Growth Rate(86~14)
4,000
Production: 7.5%
Exports: 8.6%
3,500
Domestic Sales: 6.0%

3,000

2,500

2,000
Domestic Sales
1,500

1,000

500

2015(F)
1993

2008
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992

1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007

2009
2010
2011
2012
2013
2014
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GENIVI 2015, Seoul

Auto Clusters in Korea

(UNITS)

292,000 - 380,000 -

541,000 - 144,000 -

286,000 - 278,000 -

145,000 - 1,513,000 -

- 10,400 - 3,900

- 61,000 130,000 -
Total Capacity : 4.8 million

378,000 102,000 194,000 63,000

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GENIVI 2015, Seoul

Global Production Bases

(Thousand Units)
Total Capacity: 4.4 million
Slovakia
Czech Zilina
Nosovice (300)
(300) Russia USA
St. Petersburg Alabama
China (370)
(200)
Beijing
(1,050)
China USA
Sichuan Georgia
(72) (340)
China
Yancheng
(740)
Turkey
Izmit
(200) Brazil
So Paulo
India (180)
Vietnam
Chennai Hanoi
(650) (20)

Timeline of overseas plants in operation

1996 1997 1998 2002 2005 2006 2008 2009 2010 2012 2014
Vietnam Turkey India China USA Slovakia Czech USA Russia Brazil China

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GENIVI 2015, Seoul

Contribution to the Korean Economy

Leading industry in terms of revenue, employment, exports, and so on

<Production Value> <Employment> <Exports>

Automotive Automotive
Automotive
181 Tri. U$76 Bil.
320,971 persons*
(12.12%) (13.2%)
(11.41%)

Manufacturing National
Manufacturing
2,813,575 persons U$573 Bil.
1,496 Tri.

* 1.83 million including indirect employment(13)

Integration with forward and backward industries

. Retro : Steel, Machinery, Rubber, Glass, Non-ferrous, Electric, Plastic, Chemical, etc.
. Forward : Maintenance, Transport, Financing, PR, Other Services, etc.
the automobiles importance to growth, trade, innovation, military technology, and the environment is, for
practical purposes, immeasurable. The industry is a point of national pride, a center for manufacturing
employment, and an instrument of state power for the worlds most technologically advanced economies
much more so than most people realize.
<The Great Race: The Global Quest for the Car of the Future> by Levi Tillemann

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GENIVI 2015, Seoul

Total Registration of Automobiles in Korea

(Thousand Units)
25,000

19,401 20,118
20,000 18,870

17,941 18,437
15,000
15,397

10,000 12,060
10,413
8,469
5,000 3,395

528 1,113
128 194
-
'70 '75 '80 '85 '90 '95 '97 '00 '05 '10 '11 '12 '13 14

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GENIVI 2015, Seoul

Production & Sales of Automobiles in Korea

(Thousand Units)

Domestic Transplant
Production Exports
Sales Production
Imports

13 4,521 1,544 162 3,089 4,108

14 4,525 1,662 219 3,063 4,414

15(f) 4,500 1,650 250 3,100 4,600

Note) Domestic sales are based on new registration

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GENIVI 2015, Seoul

Sales of Passenger Cars by Type

(%)
[Mini Van] 2.6 4.2 4.5 5.8 6.1

20.0 19.3
[SUV] 21.8
25.8 27.8

77.4 76.5 73.7

[Sedan] 68.4 66.0

2010 2011 2012 2013 2014

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GENIVI 2015, Seoul

Sales of Passenger Cars by Segment

(%)

18.1 19.1 19.4

[Large] 24.7 22.0 21.7 22.6 21.9
27.8 28.1

38.8 43.2 42.6 43.7

40.5 39.3 41.7
44.6
[Medium] 44.1 43.8

22.9 21.1 20.9

23.5 28.0 25.4 21.0

[Small] 22.3
21.2 21.7

14.0 15.3 17.3 16.0 15.4

11.6 13.2
[Mini] 6.9 6.4 8.3

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

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GENIVI 2015, Seoul

New Registration of EVs and HEVs

(Units)
40,000
548
1181

35,000

30,000 715

25,000

20,000 EV
37,030 35,664 HEV
15,000
28,092

10,000 20,271

5,000
7,312 8,473

0 997
2008 2009 2010 2011 2012 2013 2014

Note) Tax cut for EV : 4.2 mil. ; for HEV : 2,9 mil.

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GENIVI 2015, Seoul

Improvement of Korean Car Quality

(2003)

Press Releases: June 17, 2015

Korean Brands Lead Industry in
Initial Quality, While Japanese
Brands Struggle to Keep Up with
Pace of Improvement.
(J.D. Power)

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GENIVI 2015, Seoul

Suppliers for OEMs

GM Renault
Hyundai Kia Korea Ssangyong Total
Samsung
347 332 322 243 182 898

Multiple
350
Single
300

250
221
200 318 312 114
150 187 126
134
100

50 101 107 74
29 48 56
20
0
Hyundai Kia GM Korea R-Samsung Ssangyong Daewoo Tata
Bus Daewoo
Note) 1. Single suppliers : 435 companies
2. Ratio of single suppliers : 17.8% (based on 5 passenger car makers)

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GENIVI 2015, Seoul

Challenges to Be Addressed

Local Overseas

+ Stabilizing oil prices + Recovering global economy

Economic - Economic slowdown - Appreciation of Korean won
Factors - Increasing household debts + FTA effect (EU, USA, Canada,
- Labour unrests Australia, etc.)

+ Rehabilitating U.S. & EU markets

+ Reviving demand - Slowdown of emerging markets,
Market
+ Back-to-back release of new models coupled with political unrests
Factors
- Surge of imported cars + Improving brand values and quality of
Korean cars

- Competitive development of low-

- R&D burdens for eco-car development
Technological
- Stronger fuel economy regulations
Factors
- Enhancing safety regulations
priced cars
- Regulations on CO2 emissions
+ Global harmonization of technical
regulations

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GENIVI 2015, Seoul

Thank you
.

2015-10-14 14