South Korean media: Chinese automobiles are rising strongly, while Korean vehicles are struggling!
On February 10, the South Korean media "Today's Finance" published an article stating that the production of Chinese automobiles grew by 11% from January to November last year, reaching 31.23 million units. This number accounts for 37.3% of the global total sales. Exports are also growing rapidly, constantly consolidating its position in the global market. In 2023, it became the world's top automobile exporter, surpassing Japan. From January to November last year, its automobile exports reached 6.34 million units, accounting for 10.7% of the global (excluding China) automobile sales total.
In the electric vehicle market, its influence is even more significant. In the global electric vehicle sales of 2024, electric vehicles produced in China accounted for as much as 75.4%, while overseas markets accounted for 23.2%. Last year, from January to November, the production of electric vehicles in China increased by 31.4%, reaching 14.91 million units; exports surged by 102.9%, reaching 2.36 million units.
This is not only due to strong price competitiveness, but also because of continuous improvement in technological competitiveness, such as autonomous driving. The Chinese market is a competitive market with multiple brands, and various models of vehicles are quickly launched. As of November last year, there were 131 car brands selling in the Chinese market.
In the Chinese market, Korean vehicles are struggling. The market share of Korean companies in China once reached 9%, but it was less than 1% last year. On the other hand, the proportion of Chinese-made electric vehicles in the South Korean electric vehicle market exceeded 30%, up from 24% in 2024. Therefore, the trade deficit in automobiles for the period from January to November last year reached 24.6 billion US dollars. Automobile parts also showed a trade deficit of 16.5 billion US dollars.
In terms of technologies such as autonomous driving, South Korea is also lagging behind. Chinese companies have installed Level 3 autonomous driving on their main electric vehicles and have launched commercial trials of fully autonomous robot taxis in multiple regions. In the fierce market competition, various types of vehicles are rapidly introduced, and China has shown obvious advantages in R&D speed.
How should the South Korean automotive industry respond? From a competitive perspective, this seems to be an unsolvable problem. Therefore, some people advocate giving up the Chinese market. However, even if they give up the Chinese market, the competition with China's automotive industry will not disappear. Although the U.S. market is limited in market access due to high tariffs and other restrictions, the competition is relatively limited. However, in other markets including South Korea, they still need to face intense competition with Chinese automobiles and parts.
We cannot simply regard Chinese enterprises as competitors, but also consider how to utilize them. There are many Chinese enterprises competing fiercely, thus generating various innovations. South Korea should also explore ways to share these innovation achievements. Whether it is competition or utilization, to smoothly achieve this, the most important thing is to thoroughly investigate and analyze the changes in China's automotive industry.
Original: toutiao.com/article/1856738352770060/
Statement: This article represents the personal views of the author.