S.K. auto parts exports decline this year as China focuses on domestic production
South Korea's exports of automobile parts to China declined during the first 10 months of the year, as automakers in China tended to use parts directly manufactured there, a Seoul trade body said. The Korea International Trade Association said that South Korea shipped US$2.1 billion worth of car parts to China during the January-September period, down 3.6 percent from the same period a year earlier. China-bound shipments of car parts from makers worldwide also decelerated from making up 46.5 percent of last year's auto parts used in China to 22.7 percent this year, the association said. China-bound exports accounted for 27.2 percent of South Korea's total overseas shipment of car parts, compared with 33.5 percent a year ago. The association attributed the decrease to the fact that carmakers based in China have increasingly used parts manufactured domestically. Of South Korean companies sending car parts abroad, Hyundai Motor Corp., Kia Motors, GM Daewoo Auto & Technology, Hyundai Mobis and Mando were responsible for 81.5 percent of China-bound car parts exported from South Korea last year. "The decrease in China-bound car parts is partly due to the Chinese government's efforts to localize the auto parts industry, coupled with an increase in South Korean companies' investment there," an association official said.Please direct questions or comments to [englishhani@hani.co.kr]
