Auto Industry

in Korea

Suncheon first college

Economic Indicators of Auto Industry in Korea

Suncheon first college

 Production & Sales of Autos 2003

(Thousand units)

Domestic
Production Exports
Sales

Thousand
3,178 1,318 1,815
Units
Growth
rate over 1.0% -18.7% 20.2%
2002

Suncheon first college

 Production of Autos 2003(Global)

USA (Ten thousand units)

Japan

Germany

China

France

Korea

* The 6th largest automobile producer in the world

following USA, Japan, Germany, China and France.
Suncheon first college
Growth Trends 1990-2002

Suncheon first college

Restructuring of Korean Auto Industry

Suncheon first college

•Date of Establishment : December 29, 1967
•Number of Employees : 50,000 Persons
• Main Products (models)
- Passenger cars : Atoz, Verna, Avante XD, Click, Tuscani, New EF Sonata,
Grandeur XG, Dynasty, Equss, Santamo, Galloper, Trajet XG, Lavita,
Santa Fe, Terracan
- Commercial vehicles : Starex, New Grace, New Porter, Libero, County,
Mighty II, Aerotown, Aerocity, Express buses,Cargo trucks, Tractors,
Dump Trucks, Tank lorry, and special purpose vehicles
•2003 performance(Korea’s Automotive Leader)
-Production : 1.63 million units
-Demostic sales : 630 thousand units
-Exports : 1.0 million units
•Oversea investment
- Investment in China : a 50-50 JV with Beijing Auto with initial production of
30,000 cars per year
- Investment in Alabama, USA : Annual capacity of 300,000 cars

Suncheon first college

•Domestic Plants
-Ulsan Plant
No. 1 Plant ...Verna (Accent),
No. 2 Plant ...Atos, Santa Fe, Trajet, Dynasty,
Equus (Centennial)
No. 3 Plant ...Avante XD (Elantra),
Tiburon (Coupe), Lavita (Matrix)
No. 4 Plant ...Starex (H-1), Grace (H-100),
Porter (H-100 Truck), Libero (H-1 Truck)
No. 5 Plant ..... Terracan, Santamo, Galloper
-Chonju Plant : medium and large size trucks, special duty cars
-Asan Plant : 260,000 units of New EF Sonata(Sonata), Grandeur XG(XG)

•R&D Center : Ulsan R&D Center, Namyang R&D Center,

Powertrain R&D Center, Commercial Vehicle R&D Center

•Overseas Plants
- HMI : Hyundai Motor India Ltd. 현대모터인디아 (HMI)
- HAOS: Hyundai Assan Otomotive Sanayi(Hyundai Assan Otomotiv Sanayi Ve Ticaret A.S Turkey)
- BHMC: Hyundai Motor Beijing Office ( 北京現代汽車 ·BHMC 베이징현대기차 )
- HMMA·Hyundai Motor Manufacturing Alabama- 현대모터앨라배마 Alabama Montgomery

Suncheon first college

•General Information
Kia Motors was founded in 1944. Kia produced Korea's first gasoline engine in 1973 and, in October
1974, Korea's first passenger car, the Brisa. Kia continued to compete in the automotive industry un
til 1997, when it fell victim to the Asian financial crisis of that year and was taken over by the Hyund
ai Business Group the following year. The Hyundai Automotive Group was founded in 2000 and Kia
and Hyundai Motor Company became sister companies along with parts supplier Hyundai Mobis and
a number of other companies. Kia is currently Korea's second largest manufacturer and its oldest. Ki
a has three production centers in Korea: Hwasung, which has an annual production of 600,000 unit
s; Sohari, which produces 340,000 units; and Kwangju, which manufactures 210,000 commercial ve
hicles every year
•2003 performance
-Production : 853 thousand units
-Demostic sales : 323 thousand units
-Exports : 530 thousand units
•Main Products (models)
- Passenger cars : Visto, Rio, Spectra, Spectra wing, Optima, Opirus, Enterprise, Carnival,
Carens, Carstar, Sportage, Sorento, Retona.
- Commercial vehicles : Pregio, Towner (coach, van, truck), Bongo Frontier, Pamax, Rhino
Cosmos, Grandbird.
•Oversea investment(Investment in China)
-Partner : Dongfeng Yueda Motors ( 東風熱達起亞汽車 ·DYK, 둥펑위에다기차 )
-Initial capacity : 50,000 units /annum
-Planned annual capacity : 300,000 units by 2007

Suncheon first college

•History
Shinjin Industrial was established in 1995 in Bupyeong --Saenara Motor(founded in 1962) was
bought by Shinjin Industrial in 1965 -- changed its name to Shinjin Motor after establishing
collaborations with Toyota. --After Toyota's withdrawal in 1972, Shinjin Motor started a joint
venture with General Motors under the name General Motors Korea(GMK) , but was renamed again in
1976 to Saehan Motor.-- After the Daewoo Group gained control in 1982 the name was changed to
Daewoo Motors.-- In the early 1990s Daewoo Motors started to expand heavily throughout the
world. Until 1996 all cars were based on models from General Motors.-- After the Asian
financial crisis started in 1997, it took over the troubled Jeep specialist SsangYong in 1998,
but ran into financial trouble in 1999.--In 2001 General Motors bought most of Daewoo Motors
and now holds a stake of 66.7%. The deal did not include 15 plants, especially Daewoo's oldest
plant in Bupyeong which now operates under the name Daewoo Inchon Motor Company as a supplier
to GM Daewoo Auto & Technology .
Bankruptcy in Nov. 2000 due to heavy debt
GM’s take over Daewoo in April 2002
-A new company GM Daewoo Auto & Technology (GMDAT) launched in November 2002.
-Share holding : GM67%, Daewoo Creditors 33%
•2003 performance
-Production : 400 thousand units
-Domestic sales : 128 thousand units
-Exports : 256 thousand units
•Main Products (models)
- Passenger cars : Matiz II, Lanos II, Kalos, Lacetti, Nubira II, Leganza, Magnus, Rezzo
- Commercial vehicles : Damas, Labo, buses and trucks
Suncheon first college
•History
Jan. 1954 : Ha Dong-hwan Motor Workshop was established
Jul. 1963 : Two companies (Ha Dong-hwan Motor Workshop and Dongbang Motor Co., Ltd.) merged
under a new name, Ha Dong-hwan Motor Co., Ltd
Feb. 1977 : Company name changed to Donga Motor Co., Ltd.
Dec. 1984 : Donga Motor took over Geohwa Co., Ltd.
Nov. 1986 : SsangYong Group participated in the management of Dong-A Motor
Jan. 1998 : Merged with the Daewoo Group
Apr. 2000 : Became independent from the Daewoo Group
(In late 1997, like all Korean companies, it was severely tested by the economic downturn that affected all
Asian countries, it was merged with the Daewoo Group in 1998. After the crisis passed, it was separated fro
m the Daewoo Group in 2000, and established itself as an independent automobile manufacturer again.)
•Character
-As a premier manufacturer of sports utility vehicles (SUV) and recreational vehicles (RV), Ssang
Yong Motor is making an all-out effort that manufactures premium products in leading 4X4 market.
-SsangYong Motor began its business as a manufacturer of commercial vehicles such as trucks, bus
es, and special purpose vehicles including mixers and fire-fighting trucks.
•2003 performance
-Production : 152 thousand units
-Domestic sales : 130 thousand units
-Exports : 15 thousand units
•Main Products (models)
- Passenger cars : Chairman, Musso, Korando, Rexton
- Commercial vehicles : Istana

Suncheon first college

 RENAULT SAMSUNG MOTORS
•History
-Samsung Motor was established in 1995
-Samsung Motor was acquired by Renault in April 2000.
•State of the Company]
- Founed on September 1, 2000
- Capital stock: 440 billion won
- Major shareholders : Renault(70.1%), Samsung(19.9%), Creditors‘ syndicate(10%)
- Production capacity : 240,000 cars/year
- Business site : Seoul Office, Giheung Technical Center,
Busan Plant (Sinho Industrial Complex,Gangseo-gu,Busan)
•2003 performance
-Production : 118 thousand units
-Domestic sales : 110 thousand units
-Exports : 1.2 thousand units
•Main Products (models)
- Passenger cars : SM5 (SM525V, SM520V+, SM520V, SM520LE, SM520SE, SM520, SM518)
SM3 (SM3LE, SM3CE, SM3FE, SM3XE, SM3SE, SM3 Entry
•Plan
-The goal is to produce 500,000 cars per year, including 250,000 units for export by 2010.
-In the future, Renault Samsung Motors expects to strengthen its relationship with the Rena
ult-Nissan Alliance. The Design Agreement recently signed between Renault Samsung Motors an
d Renault is an example of the strengthening relationship. The company and the Alliance wil
l also continue and expand a variety of human exchange programs and share their parts-suppl
y network.

Suncheon first college

 Market Share by Maker

Note: Based on domestic sales of cars and commercial vehicles

Suncheon first college

Market Share & Sales of Autos 2003

Suncheon first college

Sales of Imported Car

Suncheon first college

Exports by Region 2003

Suncheon first college

 Vehicle Registration and Unit Ownership

(Thousand units)

Year 1980 1985 1990 1995 2000 2002 2003

Total 8,469
528 1,113 3,395 12,060 13,949 14,587
Registration ,

Cars 249 557 2,075 6,006 8,084 9,737 10,278

CVs 279 556 1,320 2,463 3,976 4,212 4,299

Person/Car 153 73 21 7.5 5.8 4.9 4.7

Suncheon first college

Long-term Forecast

Suncheon first college

Global Production

Suncheon first college