Smaller Output

 

Even though the sales of Korean cars, including Hyundai and Kia Motors, significantly increased in France in the first quarter, the shipments from the country rather decreased. This was largely due to the fact that Hyundai and Kia Motors’ overseas factories around the world increased output. Therefore, domestic factories are losing ground owing to low efficiency, high costs and strikes. 

According to automobile sources on May 10, the sales of Korean vehicles in France increased 31.4 percent in March and 23.3 percent in the first quarter year-on-year. These were eye-catching figures considering the fact that the overall auto market in France showed an average growth of 9 percent during the same period.

Hyundai Motor sold 13,444 cars in France in the first quarter, showing a 23.3 percent or 2,544 unit increase from a year earlier. Its market share also increased by 0.47 percent to 1.34 percent from 0.87 percent a year ago.

However, the amount of Korean car exports to France, including Hyundai-Kia Motors, rather decreased by 34.9 percent. This was because the exports of domestic production dropped as Korean automakers increased the number of overseas production bases, such as the Czech Republic and Slovakia.

In general, an export is something that passes the border of a country. So, the output doesn’t count as actual exports when Hyundai and Kia Motors manufacture products in overseas factories and sell them in the same overseas markets.

According to the Korea Customs Service, the exports of Korean vehicles to France stood at US$123.97 million (135.1 billion won) in the first quarter, a 34.9 percent drop from a year earlier.

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