ID :
190361
Wed, 06/22/2011 - 12:29
Auther :
Shortlink :
https://oananews.org//node/190361
The shortlink copeid
China's car industry to reach parity with S. Korea by 2020: report
SEOUL, June 22 (Yonhap) -- China's rapidly growing automobile industry is expected to reach the same level of international competitiveness as South Korea by 2020, a local economic think tank said Wednesday.
According to the report by Samsung Economic Research Institute (SERI), China has made considerable strides to improve its auto industry in the past few decades and should be able to compete effectively with South Korean carmakers in the coming years.
"The neighboring country may use a two-track strategy of building eco-friendly electric cars for advanced, industrialized economies and cheap, small-sized cars for emerging countries," it said.
This approach may be effective in winning market share across the board and hurt South Korea's market presence. Beijing actually started research on electric cars before South Korea and has accumulated related technologies.
In 2010, China became the largest automobile market in the world, with indigenous and foreign carmakers churning out 18.26 million vehicles during the one-year period. More than half of all cars manufactured in the country are made by foreign companies such as Volkswagen, General Motors, Hyundai, Honda and Toyota, although there has been a steady increase in cars made by local producers.
South Korea ranked fifth after the United States, Japan and Germany, with the country's five carmakers producing 4.27 million units. For 2011, the production numbers may top 4.60 million for a gain of 7.7 percent from the previous year.
"There is even a chance that China's competitiveness in the automobile industry may surpass that of South Korea in 10 years, making it imperative for local companies to take action to maintain their edge," SERI said.
yonngong@yna.co.kr
According to the report by Samsung Economic Research Institute (SERI), China has made considerable strides to improve its auto industry in the past few decades and should be able to compete effectively with South Korean carmakers in the coming years.
"The neighboring country may use a two-track strategy of building eco-friendly electric cars for advanced, industrialized economies and cheap, small-sized cars for emerging countries," it said.
This approach may be effective in winning market share across the board and hurt South Korea's market presence. Beijing actually started research on electric cars before South Korea and has accumulated related technologies.
In 2010, China became the largest automobile market in the world, with indigenous and foreign carmakers churning out 18.26 million vehicles during the one-year period. More than half of all cars manufactured in the country are made by foreign companies such as Volkswagen, General Motors, Hyundai, Honda and Toyota, although there has been a steady increase in cars made by local producers.
South Korea ranked fifth after the United States, Japan and Germany, with the country's five carmakers producing 4.27 million units. For 2011, the production numbers may top 4.60 million for a gain of 7.7 percent from the previous year.
"There is even a chance that China's competitiveness in the automobile industry may surpass that of South Korea in 10 years, making it imperative for local companies to take action to maintain their edge," SERI said.
yonngong@yna.co.kr
