Still Korea exporting market is under MOBIS control, due to the imitation parts.

I have posted about imitation issue in previous time.

Imitation Besfits has been Caught by Korean Customs

Ostensibly it is a matter of trademark intellectual property rights. MOBIS say they are protecting their clients from bad quality fake parts.

In this regard, Hyundai MOBIS is cooperating with Korea customs now so they can open any container and check the shipment.

It means they can give pressure to their MOBIS distributors, if they found the distributors attempted to sell MOBIS parts to the exporters, by checking the container shipments.

I can guess the distributors may decreased supply because of MOBIS strict controls.

I found the Korea article here  https://www.sisaweek.com/news/articleView.html?idxno=145263

but I couldn’t fine English articles. If I google by keywords – Hyundai MOBIS, only shown the below articles.

Five Hyundai Motor units join RE100 energy campaign

Hyundai Motor, Kia pledge to 100% renewable energy by 2050

There is another bad news that the price will increase more due to raw material prices.

http://www.munhwa.com/news/view.html?no=2021071901032203353001 (couldn’t find any English article)

There are 4 points of view Korea automotive business.

  1. The conflict  between the labor union and Hyundai motor group continues.
    If they cannot find the agreements by 20th July, the labor union will carry out a strike, which can takes the loss of KRW 70 billion.
  2. Absolutely insufficient preparation for future car conversion of domestic auto parts makers.
    According to the industry trend report released by the Korea Automobile Research Institute, the localization rate of electric vehicle parts is 68%.
    The localization rate of parts for hydrogen electric vehicles (which was said to be the world’s No.1) is only 71%.
  3. Semiconductor supply shortage.
    Renault Samsung Motors will suspend the operation of its Busan plant for two days on the 19th and 20th due to a shortage of semiconductor parts.
  4. Lack of steel and nickel

The researcher expects the deterioration of profitability in the auto industry.

In my opinion, those Korean car makers never takes the minus profits. They will cover it by increasing selling price and reducing buying price.

What do you think? Please leave your opinion 🙂

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Thank you.