Korean car producers beef up car output amid easing in chip shortage

[Photo by Yonhap]

South Korea’s finished carmakers are beefing up output to make quicker deliveries upon easing in chip shortage that disrupted vehicle production and deliveries around the global for the last two years.

Kia Corp. plans to up weekend overtime later this year to respond faster to strong demand for its new cars, according to a company source. Output is expected to return to normal levels next year.

The five Korea-based finished car makers – Hyundai Motor Co., Kia Corp., GM Korea Co., Renault Korea Motors Co. and SsangYong Motor Co. – produced a combined 2,695,770 vehicles from January to September, up 4.6 percent from a year-ago period, according to data compiled by the Korea Automobile Manufacturers Association on Thursday. The additional output indicates an ease in parts supply conditions.

Delivery time however remains frustratingly long.

Domestic sales of Korean carmakers started increasing recently with a 23.8 percent jump on year in September, but their cumulative shipments in the January-September period fell 5.9 percent.

SsangYong Motor was the only winner that saw a 19.2 percent on-year rise in its cumulative vehicle sales, and four others not.

Popular Genesis GV80 can be delivered two years and six months after order is booked. It takes nearly two years for Hyundai Avante Hybrid and Santa Fe Hybrid to reach their buyers.

As domestic sales have been slowing due to delay in car deliveries, automakers are focusing more on exports to offset the losses at home. Finished car exports by Korean producers totaled 1,655,073 units in the first nine months, gaining 8.8 percent from the same period a year earlier.

All five makers reported increases in their outbound shipments, and experts say they can make better profits from exports amid weakening Korean currency against the U.S. dollar.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]