Knockdown exports by South Korea's four major carmakers soared in the first five months of the year, the
Korea Automobile Manufacturers Association (KAMA) said Wednesday. Exports of knockdowns by GM Daewoo
Auto & Technology Co., Hyundai Motor Co. (KSE:05380), Kia Motors Corp. (KSE:00270) and Ssangyong
Motors Corp. (KSE:03620) were tallied at 249,161 units in total, a significant increase of 168 per cent from the
corresponding period of last year. The January-May knockdown exports accounted for 28 per cent of all
automobile shipments by local firms, the association said. Knockdown exports, referring to shipments of
components and parts for assembly at offshore plants, are widely used as a means to avoid high import tariffs
in developing countries. "Local players are accelerating their moves to nations such as China, India, Thailand,
Turkey and Vietnam, as they see big business opportunities there," said an industry source. "In particular,
competition among South Korean players in China is heating up." Notably, GM Daewoo sent 127,445
knockdowns abroad in the January-May period, up 290 per cent from the same period of the previous year. GM
Daewoo's share of the nation's knockdown exports rose to 51.5 per cent from 35.1 per cent. Hyundai Motor,
the nation's largest automaker, also expanded its knockdown exports to 107,228 vehicles from 55,356 units
over the cited period, but saw its share shrink to 43 per cent from 60 per cent. Kia Motors, a Hyundai Motor
affiliate, shipped 12,134 knockdowns and held a market share of 4.9 per cent, up from 3.2 per cent a year earlier,
the KAMA said. Ssangyong Motors Corp., the country's No.4 automotive firm, shipped 2,038 knockdowns abroad in the
first five months of the year, but saw its share slide to 0.8 per cent from 1.9 per cent. In May alone, their
knockdown exports totaled 66,610 cars, a sharp increase of 158 per cent from a year ago.
The May figure was the largest ever on a monthly basis.
- Source from Yonhap News (Jun 9, 2004) - |
