Korean Manufacturers Strengthen Grip On Europe
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Korean manufacturers are now building cars with European appeal
August 27, 2006: EurotaxGlass’s, Europe’s leading provider of automotive data, comments on how Korean manufacturers continue to strengthen their position within the European car market.
For many years the Korean manufacturers were marketing vehicles in Europe that were primarily designed for the Asian market and their appeal in Europe proved to be limited. For most European consumers not even the low prices could compensate for the perceived lack of quality and unappealing design.
In recent years the Korean manufacturers have worked hard to redress these issues and are now producing attractive, high quality products that specifically target European buyers. Total Korean car sales are up 5.2 per cent year-to-date in Europe compared to last year and sales in Europe have been climbing steadily since the turn of this century.
“The combination of high specification, improved quality and designs that appeal to European tastes, have made Korean products more attractive,” says Martin Verrelli, Head of the EurotaxGlass’s Market Intelligence Unit. “The economic advantages associated with Asian manufacturing allow for very competitive pricing, and the established European volume manufacturers are really feeling the pressure.”
Recent models from the big two manufacturers have been extremely well received. 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 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.
Korean products now account for 3.85 per cent of the European car market compared to 2.88 per cent in 2002.
Market share - Western Europe
2003 - 3.3
2004 - 4.1
2005 - 3.7
2006 - 4.0 (prognosis)
About EurotaxGlass’s
William Glass first published Glass’s Guide to Car Values in 1933 and July 2003 marked 70 years of the motor trade’s ‘Bible’. In 2000 Glass’s merged with Eurotax, forming EurotaxGlass’s - Europe's leading supplier of automotive business intelligence across 28 countries. The merger has created a group with unrivalled resources and knowledge.
Today, EurotaxGlass’s offers products and solutions that are essential at every stage of the vehicle lifecycle – from valuation, technical and fleet management data, through to estimating, bodyshop and dealer management systems and web-based services. Recent developments include valuation data for consumers – offered via the Glass’s Motoring Guide website (www.glass.co.uk) – and the pan-European Market Intelligence Service that provides bespoke data and analysis for the industry at large.