ID :
191895
Thu, 06/30/2011 - 01:06
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https://oananews.org//node/191895
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FTA to help Korean auto parts firms up EU market share
SEOUL, June 30 (Yonhap) -- South Korean auto parts companies are expected to expand their market share in the European Union (EU) to over 10 percent this year, helped by the free trade pact that goes into effect next month, a report showed Thursday.
According to the report by the state-run Korea Trade-Investment Promotion Agency (KOTRA), the removal of duties ranging from 2.7 percent to 4.5 percent will boost sales of local parts and components in the world's largest economic bloc.
The market share of South Korean parts among imports from outside the EU reached 8.5 percent last year, up from 6.4 percent tallied in 2009.
"If the 10 percent market share is reached, it will be a record high for locally made parts in Europe," a KOTRA official said. "Judging by the favorable response from prospective buyers the target should be attainable."
Last year, Japanese auto parts and components made up 25.1 percent of all imports, followed by Chinese products with 14 percent and U.S. goods with 11.5 percent.
"Besides the elimination of tariffs, European parts companies and carmakers are attracted by growing quality competitiveness of locally made products and the need to diversify their imports away from Japan," the official said.
KOTRA said that a poll conducted on 17 parts importers showed 65 percent having plans to buy more from South Korea.
Germany's Bosch GmbH. the world's largest supplier of automobile components, and Sweden's Mekonomen AB said they want to increase purchases of South Korean parts by 5-10 percent after the FTA goes into effect.
Other companies such as luxury carmaker Mercedes-Benz and British car parts supplier Mayflower Corp. said they could buy more from South Korean suppliers.
KOTRA, meanwhile, said it plans to make a concerted effort to hold talks with other European carmakers such as BMW AG and Opel AG in order to help local parts companies win more orders down the road.
According to the report by the state-run Korea Trade-Investment Promotion Agency (KOTRA), the removal of duties ranging from 2.7 percent to 4.5 percent will boost sales of local parts and components in the world's largest economic bloc.
The market share of South Korean parts among imports from outside the EU reached 8.5 percent last year, up from 6.4 percent tallied in 2009.
"If the 10 percent market share is reached, it will be a record high for locally made parts in Europe," a KOTRA official said. "Judging by the favorable response from prospective buyers the target should be attainable."
Last year, Japanese auto parts and components made up 25.1 percent of all imports, followed by Chinese products with 14 percent and U.S. goods with 11.5 percent.
"Besides the elimination of tariffs, European parts companies and carmakers are attracted by growing quality competitiveness of locally made products and the need to diversify their imports away from Japan," the official said.
KOTRA said that a poll conducted on 17 parts importers showed 65 percent having plans to buy more from South Korea.
Germany's Bosch GmbH. the world's largest supplier of automobile components, and Sweden's Mekonomen AB said they want to increase purchases of South Korean parts by 5-10 percent after the FTA goes into effect.
Other companies such as luxury carmaker Mercedes-Benz and British car parts supplier Mayflower Corp. said they could buy more from South Korean suppliers.
KOTRA, meanwhile, said it plans to make a concerted effort to hold talks with other European carmakers such as BMW AG and Opel AG in order to help local parts companies win more orders down the road.
