Posted on 22 Jul 2022
The global shortage of semi-conductors, supply chain disruptions among component suppliers in China, and concerns about the worsening conflict in Ukraine led automobile production in South Korea during this year’s January-June half to slip by 2% to 1.78 million units, according to the Korea Automobile Manufacturers Association (KAMA).
Market leader Hyundai Motor produced 817,853 units during the six months, down 1.5% on year but still giving the firm a commanding domestic market share of 46%, the data show. Its subsidiary, Kia Motors, produced 708,256 cars during January-June, down 4.3% from the first six months of last year but still ensuring its market share remained at around 40%.
KAMA is predicting that output this half will show an improvement on H1, and if that proves correct, the country's carmakers should be able to make up for last year's decline. On an annualized basis, this year's H1 performance suggests 2022 output could top 3.56 million units, Mysteel Global notes.
During 2021, South Korea ranked fifth globally in terms of vehicle production, retaining the spot for the second consecutive year, KAMA reported earlier.
Last year, China kept the top spot for a 13th straight year by producing 26.1 million vehicles, followed by the U.S. with 9.15 million, Japan with 7.84 million and India with 4.39 million, the association said.
KAMA's prediction for stable automotive output will be welcome news for South Korea's two leading auto sheet makers, POSCO and Hyundai Steel. But POSCO has a parallel strategy for boosting sales of its high-strength Gigasteel sheets in partnership with Ssangyong Motor, the country's fifth-largest automaker.
For a few days this week at POSCO's headquarters building in Seoul, the two companies are holding a promotion for Ssangyong's new crossover SUV, Torres, which incorporates Gigasteel and other advanced high-strength steel types in nearly 80% of its bodywork, according to the steelmaker.
Gigasteel has a tensile strength of 980 Mpa which, according to POSCO, has allowed the carmaker to reduce the thickness of the steel sheets in panels by about 7% compared with those in existing Ssangyong cars, thereby lightening the SUV's body weight and so cutting fuel consumption.
During January-June this year, Ssangyong produced a total of 47,943 vehicles, higher by a sizzling 23% on year, KAMA data show.
Source:Mysteel Global
