Korean automakers' global market share reaches 8%, suggests 'V-shaped' recovery

In the first half of this year, Korean automakers sold 2,297,000 units worldwide, reducing the gap with the 2,303,000 units sold in the first half of 2019. In the first half of this year, the global market share for the Korean carmaking industry climbed by 0.6% from 7.4% in the first half of 2019 to 8.0%. 

Car sales in the global top seven automobile markets, including the United States of America, China, Europe, India, Mexico, Russia, and Brazil, increased 30.6% to 28.57 million units in the first half of last year, according to the Korea Automobile Manufacturers Association (KAMA), indicating a 'V-shaped' rebound. However, this is down 8.0% from the 31.04 million units sold in the first half of 2019.

India had the highest rise

India had the highest year-over-year rise of 95.2%, followed by Russia at 38.2%. The United States registered a rise of 29.3%, China 27.5%, Europe 27.1%, Brazil 26.3%, and Mexico 18.1%. India (1.5%) and Russia (6.0%) experienced good growth rates in the first half of 2019. Prior to COVID-19, the United States (1.3%) and China (1.1%) had similar levels. Brazil (24.6%), Europe (23.2%), and Mexico (19.6%) recovered at a slower pace.

Due to the base effect of a steep decline in sales induced by the lockdown to contain COVID-19 last year, the Indian market recovered the fastest. With the impact of economic policies and a higher vaccination rate in the United States, sales have returned. With a jump in sales of new energy vehicles (NEVs) such as EVs (217.4%), sales in the Chinese market have nearly recovered to pre-COVID-19 levels.

However, because of the return of COVID-19 in European countries and production delays (about 100,000 to 120,000 units) caused by a global semiconductor scarcity for automobiles, the European market has seen a somewhat delayed comeback. The market share of Asian automobile businesses (Korea, China, and Japan) climbed from 47.8% last year to 50.6% this year, owing to the quick recovery of global markets.

Korean community has increased market share in the US, Europe and India

Local Chinese businesses, particularly electric vehicle (EV) enterprises, have expanded primarily in domestic markets in China. By improving product lines to meet clients for SUVs and electrification models, the Korean community has recently increased its market share in the US, European, and Indian markets. Korean automakers' global market share climbed fast in the first half of the year, rising from 7.4% in 2019 to 7.6% in 2020 and 8.0 per cent this year. 

(Inputs from ANI, Image: AP)