Sales value of auto parts industry South Korea 2008-2023

In 2023, the South Korean auto parts industry had a sales value of almost 108 trillion South Korean won, showing an increase compared to the previous year. Original equipment manufacturer (OEM) sales made up the majority of total sales. Other than OEM sales, exports and aftermarket spare parts as well as business among companies accounted for the rest. The primary export destinations were the United States, China, Mexico, and others where there are finished car production plants. Auto part exports had previously suffered due to sluggish demand resulting from the U.S.-China trade war.

Automotive parts industry in Korea

The Korean auto parts industry is rated as one of the world’s top auto parts producers, with Korea’s output making up around five percent of the global output as of 2017. Even as Mexico and India overtook Korea as leading producers of finished cars, Korean companies have remained competitive in the global auto parts market with eco-friendly parts, advanced features and modularization. Six Korean auto parts manufacturers were ranked in the top 100 parts producers in the world, by sale value. Hyundai Mobis was in 7th place and made over 25 billion dollars in sales in 2018. Even as Korean automakers lost market share in finished cars in the past decade, their market share in auto parts increased, aided by the introduction of convenience devices and electronics components into modern automobiles.

The future for Korean auto parts

Amid sluggish demand worldwide, automakers are resorting to innovative strategies such as electric vehicles and autonomous driving to achieve growth. Korea’s position as an IT powerhouse is expected to be of benefit to auto parts manufacturers in this regard, for example, as smart devices are integrated into automobiles. Korean automakers are also pursuing new materials and technologies to reduce the environmental impact of automobiles. There is considerable ongoing and planned government investment in electric vehicles, hydrogen fuel cell vehicles, and autonomous driving technology, in addition to related infrastructure and subsidies for purchasing such vehicles. Demand in these fields and related auto parts is expected to increase rapidly in the years to come.