Korea # 39; boom massage chair
Seoul Motor Show VDA meets many suppliers in the German pavilion leading in the premium and diesel.
Statement by Klaus Br UNIG, CEO of the German Association of the Automotive Industry VDA, at the Seoul Motor Show in Seoul Thursday, April 2, 2015 at 13 h 30.
The German Association of the Automotive Industry VDA is now here at the Seoul Motor Show for the fourth time with a German official pavilion This common presence is supported by the German Federal Ministry of Economy and Energy We wish to AUMA thank the Association of German trade Fair Industry, the IMAG living society, and the German Embassy for their excellent cooperation in this pavilion German suppliers present their innovations and performance capabilities in addition, German vehicle manufacturers have many new models on display in Seoul vehicle Exhibition.
Both manufacturers and their suppliers are organized under the aegis VDA Our association has about 620 members manufacturers of passenger cars and commercial vehicles, trailers, bodies and buses, and the group with the most members in more than 500 suppliers.
I would like to present our position on five subjects.
The Korean market from the perspective of the German automotive industry.
Premium strategy as a factor in the success of the German automotive industry.
Diesel strategy of German manufacturers here in Korea.
Market South Korean passenger cars rose 9 percent in 2014.
The market for South Korean passenger cars rose more than 9 percent in 2014 to reach a good 1 to 4 million new vehicles over the previous three years, he tended to show a more lateral movement growth almost two figures in 2014 was supported by favorable financing conditions, low interest rates and the introduction of many new models this growth was achieved despite the high exchange rate of the won against the Japanese yen.
For the German automobile industry, of course, the development of imports is especially important here in Korea, the total number of imported cars rose 25 percent in 2014, 196,400 units.
The proportion of the new car market in South Korea to passenger cars imported in 2014 was double the figure of 2010, up from 7 to 14 percent This means that one in seven new cars sold in Korea last year have imported imports increased steadily since the beginning of the decade this development is especially good for German manufacturers in 2014, the German group brands pushed their passenger car sales in South Korea by 28 percent to 143.300 units exported during the previous year, the Germans had already achieved an increase of a quarter are growing much faster than the market itself German brands represent three of the four vehicles imported 73 percent three models imported high are all built by German manufacturers VW Tiguan TDI BlueMotion 2 0; the BMW 520d and the Mercedes-Benz E 220 CDI.
A look at the import market generally reveals that the premium segment is particularly important to 70 percent of imported cars are premium products and here the German brands have a strong lead of 86 percent of all the top cars imported range are German manufacturers It is obvious that more and more customers buying new cars here in South Korea enjoy the outstanding quality, sophisticated design, high levels of safety and efficiency and comfort offered by the automotive German top range Korea is without doubt become increasingly important for our auto industry as a high-end market.
The free trade agreement between the European Union and South Korea came into force in mid-2011 Even before the German manufacturers had been able to grow significantly in South Korea and since then Korean imports of passenger cars German brand continued to increase; they were up 28 percent in 2014 only 143.300 units Of the 83 percent, or 119,100 cars, came from Germany The other 17 percent came from international production sites Compared to 2010 this year 54,000 new cars with German insignia were sold in Korea, German manufacturers have increased sales by 165 percent in exports to Germany alone more than doubled from 53,700 to 119,100 units.
More and more customers in Korea obviously appreciate the attractive products of German manufacturers This applies particularly to the premium.
Our companies have stepped in Korea marketing activities.
The German automotive industry expertise in diesel engines is paying.
And of course, low interest rates, GDP growth, and the exchange rate euro gained also have positive impacts.
So there are several factors influencing market development Free Trade Agreement reduced the already relatively low import duties but that itself does not explain the impressive success of our manufacturers, we would delighted to conclude that the underlying previous attitude is to buy Korean apparently not now so widespread over the opportunities offered by globalization are moving increasingly to the fore This is because South Korea also depends on exports and thus access to third country markets.
German exports to Korea climbed before the FTA came into effect, for example, in 2010, only the value of exports of German cars more than doubled compared to the previous year from 658 to 6 million January 44 billion.
The value of the automotive trade balance of exports minus the value of imports, including passenger cars, commercial vehicles, products suppliers, engines, trailers, crates and vehicles between Germany and Korea increased in 2014 a good half compared to 2013, 4 0 billion export value increased by 37 percent to 5 0 billion, while the value of imports fell by 8 percent to EUR 1 0000000000 Car specific accounted for three quarters of the export value, or 3 8 billion euros.
If we take a look at the period from 2010 to 2014, we find a win-win situation clearly the value of both exports and imports have more than doubled 118 percent and 102 percent, respectively, the figures show that this growth in trade is not a -way street but the results of the additional growth in both regions.
In addition, non-tariff trade barriers should be eliminated by the free trade agreement, however, there are still areas which require further work, for example, South Korea introduced through after the conclusion of the free trade agreement a certification system developed for Motor-vehicle spare parts imported parts in South Korea should be data marks, which is a complex process, the packaging should be opened specifically for this purpose, and Korean brands additional should be applied, and the package is closed again Unfortunately, e brands used in the EU are not accepted here, we would see here an agreement with the EU to make it easier for all business trading partners.
Regarding the export figures of Korean manufacturers, we must remember that they have been localized for some years now and they have their own production facilities in the new Member States in the period 2010-2014, the Koreans this increased overseas production by 49 percent to 572,000 cars so products reach the European market through two channels on one hand exports of Korea, and other vehicles built in Europe.
An important element in the success of automakers market German passengers Korea is our cleanest diesel technology The proportion of diesel cars among all new registrations in Korea rose from a quarter in 2012 to more than a third in 2014 diesels are becoming increasingly popular in Korea Our manufacturers have made a special contribution to meet this demand, I n 2012 nearly two-thirds of 64 percent of all new German cars sold in Korea had a diesel engine in 2014, this share continued increasing and has surpassed 79 percent that means that four out of five cars sold by our OEM here in Korea are efficient, diesel models with low consumption.
The German-Korean trade is also developing very well for supply companies between 2010 and 2014, the value of exports suppliers from Germany increased by 19 percent to 884 million euros, and during the same period, the value of imports of Korean parts suppliers in Germany increased by two-thirds to 343 million euros.
The industry of the German Offer customers are vehicle manufacturers worldwide Our supply companies want to explicitly expand their contacts and business with Korean manufacturers and of course we are also faced with competition, in that the Korean suppliers do not want to be limited to the domestic manufacturers.
Overall, we see a clear opportunity to further enhance exchanges and cooperation between South Korea and the EU The freer trade we have, the better for both our countries and that is another reason we are here in Seoul this important show.
German Pavilion opens for medium-sized suppliers.
German and Korean car industry are both in good global position The two participate in global competition and can use the opportunities offered by the growth over the automotive market We expect the global car market will increase passenger 2 percent to 77 4 million units in 2015 as a whole representing growth of a quarter on 2010 61 7000000.
In Korea just over 1 million 4 cars were produced in 2014 in the EU the Korean OEM built 572,000 units, and in NAFTA they built 764,000 new cars Many of the suppliers was generated by value added .
We hope that the German pavilion will by opening doors, especially also for medium sized suppliers The German pavilion is intended to show that the Korean car industry has extremely competent and innovative development partners in the German suppliers, advocating quality, sustainable and smart new ideas.
Please come and talk to us if you have questions about the German automotive industry or looking for a particular supplier VDA is there for you And you can read more about the flag, even after exposure on the Internet.
I wish you all a successful living and I invite you to visit us at the 66th IAA Cars International Motor Show to be held in Frankfurt am Main, September 17 to 27 2015 This year's slogan is connected mobility.
The following companies will present their products and innovations in the German pavilion ACT Aerosol Technik GmbH Chemie; D RKEN MKS Systeme GmbH Co KG; Otto Durst Dursol-Fabrik GmbH Co KG; Diehl Metall Stiftung Co KG; Huf H lsbeck F GmbH Co KG first; iwi motorsysteme GmbH Co KG; Kapolnek GmbH und Schall- Schwingungstechnik; SCHERDEL GmbH; Webasto Thermo Comfort SE and Wuerth Korea Co Ltd.
German car brands expand in South Korea much faster than the market, German brands, expand.