China may overtake Korea in vehicle exports
Shanghai, October 13 (Gasgoo.com) Korea Automobile Manufacturers Association (KAMA) recently released a report which showed that Chinese vehicle exports shot up to 346,800 units in 2006 and 636,700 units in 2007 compared to 16,537 in 2002, according to peopledaily.com.
The report said China will catch up with Korea in car manufacturing and will expand its global market share within two years, posing a threat to Korean automobiles.
According to the report, Chinese automakers are making efforts to catch up with Korean carmakers. The current four to five years gap is expected to be shortened by 2010, and the Chinese car sales are expected to reach 1400,000 units in the overseas market by the same year. Korean analysts said Chinese carmakers, encouraged by the government to produce cheap cars, will rival Korean carmakers which are still dependent on price competition in chief foreign markets such as America and Europe.
To keep Chinese vehicles at bay, the report said, it is necessary for Korean car manufacturers to launch products that appeal to local consumers and to develop high technologies that can even rival German and Japanese brands by establishing their high-quality brands. Besides, Korean carmakers also should maintain their capability of developing eco-friendly vehicles.