A Threat to Korean Companies
Chinese auto parts manufacturers are increasing their presence at a rapid pace in the global market. This is because the Chinese car market itself is very large to the point of representing 30 percent of annual automobile production and Chinese carmakers and auto parts manufacturers are currently increasing their sizes through restructuring.
The Korea Automobile Manufacturers Association released a report on Oct. 2 on the world’s top 100 auto parts manufacturers in terms of 2018 sales. The list includes seven Chinese, six South Korean, 23 Japanese, 23 U.S. and 16 German companies. This is the first time that China outnumbered South Korea on the list. The six South Korean companies are Hyundai Mobis (seventh), Hyundai Wia (36th), Hyundai Transys (38th), Hanon Systems (46th), Mando (47th) and Hyundai Kefico (91st). The number of Chinese companies on the list, which was one in 2011, increased to two in 2013 and six in 2016.
“Although the combined sales of the six South Korean companies are approximately 200 percent of the combined sales of the seven Chinese companies, this can be reversed within years,” the association explained, adding, “China’s automobile production volume, which amounted to 28 million units last year, can jump to 35 million units at any time and Chinese auto parts suppliers can overtake their South Korean counterparts through upsizing once the number of Chinese carmakers is adjusted from more than 100 to 10 or so through restructuring.”