KAMA expects a small growth in the domestic car market next year

The domestic car industry is predicted to grow slightly next year. Some positive factors, such as the recovery of automotive semiconductor supply and demand, and negative factors, such as the economic recession, will coexist, but it is expected to grow even if it is small.

On the 5th, the Korea Automobile Manufacturers Association (KAMA) forecast next year’s auto domestic demand, exports and production through a report titled “Evaluation of the Automotive Industry in 2022 and Outlook in 2023.”

In the domestic market, there are factors that increase sales, such as extinguishing the demand for new cars due to the normalization of production after the recovery of semiconductor supply and demand, maintaining rapid sales of environmentally friendly cars, and launching new models of popular models, but factors such as shrinking consumption due to economic recession and high interest rates are limiting demand Expected to sell 1.72 million units, an increase of 1.5% from the previous year.

Although there are negative factors such as the global economic recession, disruptions to the export of electric vehicles due to the implementation of the US Inflation Reduction Act (IRA), and the Russia-Ukraine war, there are positive factors such as the high marketability of domestic cars and ensuring price competitiveness due to the rate continued high exchange also plays a role, increasing exports by 3.1% compared to the previous year Sales of 2.35 million units are expected to increase.

The report predicted that production would increase by 1.4% to record 3.75 million units if raw materials and semiconductors were smoothly supplied while strong domestic and foreign demand was maintained.

Kangnam-hoon, chairman of KAMA, said, “In order to continuously expand exports, additional efforts are needed to ensure export competitiveness, such as reducing the damage of the IRA and solving logistical difficulties.” We need to find support and incentives, such as extending individual consumption tax breaks,” he said.

Reporter Ham Bong-gyun [email protected]

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