South Korean Auto Parts Suppliers: Trends and Statistics ...

South Korean Auto Parts Suppliers: Trends and Statistics

South Korean auto parts suppliers are rapidly establishing themselves as leading players in the global market for vehicle components. Their steadfast commitment to producing high-quality and affordable auto parts, coupled with innovative engineering, has enabled South Korea to secure its position as the fifth-largest auto parts manufacturer worldwide, following China, Japan, the US, and Germany. According to InvestKorea.org, South Korea's global production share of auto parts increased from 2.6% in year to 3.7% in year, maintaining levels above 5% since year.

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South Korea Auto Parts Industry Statistics

Since year, the South Korean auto parts manufacturing sector has undergone significant transformations, shifting from a primarily domestic focus to an export-driven model. From year to year, the industry witnessed substantial growth, largely attributable to the expanded production capacity of major companies such as Hyundai and Kia. Independent Korean auto parts suppliers are increasingly capitalizing on foreign market opportunities largely driven by growth in the automotive sector.

In terms of numerical growth, the auto parts sector has experienced annual increments of 5.9%, escalating from $41.2 million in year to $62.9 million in year. This sector now accounts for 6.7% of South Korea's total manufacturing output and constitutes 6% of the added value of the industry. Furthermore, auto parts manufacturing employs approximately 8.7% of the national workforce, underscoring its importance to the country’s economic framework. South Korea currently ranks 12th globally in manufacturing Original Equipment Manufacturer (OEM) components and 18th in the volume of aftermarket parts produced.

The industry's expansion is propelled by elevated unit prices linked to specification enhancements, coupled with increased outbound production from domestic automakers. Additionally, trends towards global sourcing by foreign vehicle manufacturers and greater reliance on domestic auto part suppliers have bolstered growth.

As of year, South Korea is home to 883 auto parts manufacturing firms, employing over 295,000 individuals, as reported by the Korea Automobile Manufacturers Association (KAMA).

South Korean Auto Parts Export Information

Ranked as the sixth-largest exporter of vehicle parts, South Korea accounts for 6.3% of global trade, with exports valued at $21.7 billion in year. The primary destinations for these exports include the United States (27%), China (22%), Mexico (6.3%), the Czech Republic (4.2%), and Japan (3.5%).

Significant product categories among South Korean auto part exports include miscellaneous auto parts, transmissions, body parts, and brake components. The miscellaneous parts category alone contributed to 46.4% of total exports in year, with transmissions making up an additional 14.2%.

Enhanced competitiveness within South Korea's auto sector reinforces its ability to export core components, such as transmissions and brakes, making it integral to the national export profile.

Future Trends and Growth of the South Korean Auto Parts Industry

The progression of South Korea's auto parts sector is heavily reliant on targeted government initiatives and proactive research and development strategies that foster technological innovation. The increasing global demand for high-quality vehicles will further solidify Korea's position in the highly competitive auto parts landscape.

One of the government’s key initiatives includes the "Fourth Master Plan for Development of Materials and Parts," aimed at enhancing automation and data exchange within the realm of Industry 4.0. Recognizing the sector's significance, this plan seeks to create a competitive advantage within international markets.

Other industry advancements incorporate collaborations for innovation across academia and commercial industries, focusing on intelligent parts in specific regions.

The well-established growth trend is projected to continue, fueled by numerous factors including an increase in the average vehicle sale price, improved specifications, and growing domestic vehicle numbers.

Furthermore, developments in eco-friendly vehicles present an emerging opportunity for South Korean suppliers, with plans set for complete domestic production of critical components for electric and hybrid vehicles.

Top 5 South Korean Auto Parts Suppliers

The top five auto parts suppliers in South Korea are predominantly affiliated with the Hyundai conglomerate. Notably, Hyundai Mobis ranks sixth globally, with sales recorded at $26.3 billion.

For those seeking reliable sources of parts and manufacturing excellence in the South Korean market, MOTEC offers expertise and extensive product offerings, ensuring a seamless supply of quality components.