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South Korean manufacturers strengthen grip on Europe

South Korean manufacturer’s sales are up 5.2% year-to-date in Europe compared to last year.

EurotaxGlass’s, the market intelligence unit, has said the rise is due to a 'combination of high specification, improved quality and designs that appeal to European tastes'.

Martin Verrelli, head of the EurotaxGlass’s market intelligence unit, said: "The economic advantages associated with Asian manufacturing allow for very competitive pricing, and the established European volume manufacturers are really feeling the pressure."

Models such as the Kia Sorento and Hyundai Sonata have been able to compete head on with the established European competition in their respective segments. There is an increasing demand on the used car market which has a positive effect on residual values.

"If South Korea continues to produce desirable vehicles at prices that undermine European brands, we may see the complexion of Europe’s car market volume segment change significantly over the next few years," says Verrelli.

South Korean products now account for 3.85% of the European car market compared to 2.88% in 2002.

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