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Domestic Car Market Losing Growth Momentum
Local Market Saturated
Domestic Car Market Losing Growth Momentum
  • By matthew
  • October 29, 2014, 07:27
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An average roadway view, including traffic, of a street in the Gangnam district of Seoul.
An average roadway view, including traffic, of a street in the Gangnam district of Seoul.

 

According to LMC Automotive’s recent report, the global car sales volume is estimated to reach 86.47 million units this year to record a 2.4 percent year-on-year growth. It is expected to achieve a 4.0 percent growth in 2015 as well.

By region, the North American car market is expected to grow 5.0 percent this year and 2.0 percent and 1.0 percent in 2015 and 2016, respectively. The West European market’s growth estimates are 4.9 percent, 4.5 percent, and 3.9 percent for the same period. The Asia-Pacific is forecast to grow 3.9 percent, 5.4 percent, and 6.9 percent, led mainly by China and India, while Latin America will show a turnaround next year. The Korean market is predicted to be stagnant at 1.617 million units for 2014, 1.622 million in 2015, and 1.626 million the following year.

Korean automakers are likely to continue having a hard time due to imported cars, too. Imported vehicles accounted for 12.7 percent of the sell-through and 26.8 percent of the sales in the market last year. The sales volume is estimated to reach 15 percent this year.

Industry experts are saying that higher competitiveness is the only way for Korean carmakers to meet the challenge. What they are mentioning includes better labor-management relations, improved after-sales service, lineup expansion, and eco-friendly vehicle and smart car development.