Automotive production in SK

Several media reported that automotive production in South Korea was shirking in 2021. In fact, the number of productions in the country was 3.46 million vehicles in 2021. As a result, it is for the first time in 17 years that that number is less than 3.5 million. Let us look at the number from different perspective.

Hyundai produced 1.62 million vehicles in 2021 and this number is increasing by 0.1% compared to 2020. What’s more, KIA manufactured 1.4 million cars and the number is increasing by 7.0 compared to the last year. In addition, Hyundai bought KIA in 1998 after the Asian financial crisis. Therefore, it means that Hyundai group produced more than 3 million vehicles in 2021. They accounted for more than two-thirds of total production in the country.

Of course, the pandemic and chip shortage affected this result. In fact, Toyota, which is well known for its precise production, decreased its production several times in 2021. Even Toyota was facing the difficulty to produce vehicles constantly in 2021. Therefore, it seems natural that other automotive manufacturers were facing the same problem. However, we think that the problem comes not only the pandemic and chip shortage but also structure.

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