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China Set to Export Trucks & Vans to South Korea Next Year
Nov 21, 2009

China will export automobiles to South Korea next year, which primarily includes trucks and vans with advanced technology and lower price.
 
China will export automobiles to South Korea next year (2010) for the first time, as per the news by GASGOO. The foremost vehicles to be exported include vans and trucks but passenger cars will not be launched in the market.
 
China’s third largest automobile manufacturing company ‘Dongfeng Motor Group’ has signed an agreement with Dongfeng Motor Korea (DFMK) to export automobiles in South Korea. DFMK will mainly sell four models in the market – a commercial minivan, a one-ton truck, a six and a nine passenger van from April 2010.
 
According to a DFMK executive, “"The vehicles are 30% cheaper than Korean vehicles and will therefore be competitive with private entrepreneurs.” He also added that these models had been launched in the European and Singaporean market two years ago, and had faced no problem in receiving technical certification from the government of Korea.
 
Import of sedans at present is on the back seat because the Korean automakers have claimed that engine and interior of sedans do not meet the country’s standards. However, trucks and vans are expected to make their place in the market since private enterprises with small operations like to invest in vehicles with high technical quality and lower prices.
 
Despite this announcement of exporting automobiles to South Korea, the China Association of Automobile Manufacturers (CAAM) has said that the dark period for export segment of the automobile industry has not ended yet. But a gleam of hope seemed in September 2009 when China made a progress of 38.98% in automobiles export to take the total figure at 30,500 over August 2009. Nevertheless, when the figures for the period January-August 2009 compared with the corresponding period of last year, the country witnessed a decline of 57.17% as it exported only 217,400 vehicles. The total volume of auto imports and exports plummeted 24.28% year-on-year to $38.744 Billion.
 
On the other hand, RNCOS, a leading market research firm, has said in its report “China Automobile Sector Forecast to 2012” that China is making all possible efforts to become the world’s leading manufacturer of new energy vehicles. The government has also announced various incentives and subsidies to give impetus to new energy market and to make the country world’s largest electric cars producer in the next three years.
 
According to a Research Analyst at RNCOS, “The Chinese auto exports will have a big opportunity to tame the Korean market if automakers keep their prices competitive to challenge the authority of Hyundai Motor and its affiliate Kia Motors who have been dominating the market.”
 
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