It has been pointed out that more than 60 percent of South Korean auto parts manufacturers are not prepared for the future car era, more than 60 percent of the manufacturers that are prepared are currently in the red, and more than half of those in the red are predicting that the loss will last for at least three years.
According to those auto parts manufacturers, their biggest challenges are related to funds, professional manpower, and base technologies, which are hard to solve on an individual company level.
South Korean automakers are aiming to raise their global EV market share to at least 12 percent by 2030 by producing at least 3.23 million EVs that year. However, South Korean auto parts manufacturers are still highly reliant on internal combustion engine vehicles and this reliance may affect the automakers.
It is in this context that Hyundai Motor Group launched collaboration programs in October last year. The programs that add up to 5.2 trillion won (US$4 billion) are to assist in auto parts manufacturers’ adaptation to future cars such as hydrogen and electric vehicles.
