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For this year’s Moscow International Motor Show 2011 (MIMS 2011), nearly more than 50 promising small and mediumsized enterprises in the auto parts industry are ready to showcase their top-rated and high-value-added full line up of items with reasonably adjusted prices.
These products that are expected to attract hot attention among the many visitors include not only large South Korean companies’ goods, but also especially small and medium-sized firms’ items, ranging from parts and components such as engines, transmission, exhausts, etc. to car accessories like tires and wheels, etc.
Inspired by last year’s performance, a wide spectrum of exhibitors from all over the world will be competing to raise their profiles by displaying their impressive new and hot products for the visitors who are likely to show strong interest. Over the past 21 years, MIMS has become a vital source of contacts and information for all those involved in the automotive industry, giving them the opportunity to compare the quality and cost of products of a wide variety of companies. National pavilions of Korea will be presented at the fair. And Ain Global, a Korea Automotive Industry Globalization Foundation, is also arranging the necessary means to strongly support both exhibitors and visitors.
During the fair, visitors will have the opportunity to get acquainted with the newest products, technologies and services of
key players in the international market. The nation’s giant part makers are accelerating their pace for broadening their presence in the global market.
South Korea’s largest auto parts maker, Hyundai Mobis, has unveiled its plan to increase its supply volume to the ‘Big 3’ automakers in the United States by up to 40% by 2015. The company is already supplying more than 70% of its products to Hyundai Motor and Kia Motors’ plants located in North America.
An official from the company was quoted as saying “Hyundai Mobis, the 12th largest auto parts company by sales in 2009, aims to enter the top-10 rankings in the short term and become the fifth-largest auto parts maker within a decade.” Underscoring its determination to achieve these ambitious goals, Mobis America, the part maker’s local branch set up in the United States, posted $3.2 billion in sales last year, accounting for 16 % of the company’s entire sales. Last year, Mobis America supplied $2 billion worth of modules to Chrysler and signed a $260 million contract to supply Integrated Center Stacks (ICS) to GM.
At present, the company’s module and parts businesses with Hyundai and Kia Motors account for more than 85% of its total sales. Now the company reportedly plans to increase the proportion of sales associated with foreign automakers by more than 25% this year, reducing its dependence on Hyundai and Kia to 70%. The target orders for the year are set at $2.2 billion in addition to $7.5 billion in backlog ordered by foreign auto companies late last year.
Recently South Korea’s automobile production (in May) rose 10.5% to 388,666 units, driven by the growing pace of exports. Year-to-date production in 2011 gained 9.2% over a year ago, registering 1,864,993 units. Domestic sales in May 2011 increased 3.7% year-on-year, driven by the new model release effect by Hyundai’s Grandeur (HG), Kia’s Morning (TA), GM Korea’s Arlando and Ssangyong’s Korando C, but it declined 5.1% from the previous month owing to the so-called “Yoosung’s crisis” resulting in supply shortages for such popular models as Santa Fe, Starex, Porter and Sportage R. Year-to-date home sales posted growth of 3.6% at 610,361 vehicles.
Owing to the growing consumer preference for small-sized cars with high fuel-efficiency amid oil price hike, increasing auto demand in emerging markets and expanding export-oriented model introductions, exports in May 2011 climbed 10.6% to 261,602 units. Amid oil price hikes, preference for the small-sized cars with high fuel-efficiency is conspicuous. Exports for the five months in 2011 continued to leap, up 15.2% year-on-year to 1,235,595 units.
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