South Korea's car production to grow 2.9% by end-2019

The trade dispute with Japan may be pushing consumers to buy local.

South Korea's vehicle production volumes is expected to grow 2.9% by end-2019 following strong 3.3% growth in the first seven months of the year, according to Fitch Solutions.

Also read: South Korean car sales to hit roadblock amidst high youth unemployment

This was attributed to the trade dispute with Japan, which may have compelled consumers to reject Japanese branded vehicles in favour of local vehicles.

"Furthermore, we expect Korean automakers to step up their advertising campaigns in order to capitalise on the current weakness of Japanese automakers in South Korea," Fitch added.

However, Japanese vehicles only represented a market share of 3.5% at around 54,000 units in Korea. Still, the effects of the dispute was considered enough to keep vehicle output from contracting along with the slowdown in vehicle sales in 2019.

Once trade tensions ease, the average annual growth of vehicle production in 2019 to 2028 is projected to ease to 1.7%. 

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!