KOTRA Holds Online Briefing on Future Cars in Response to GVC Restructuring

[Asia Economy Reporter Suyeon Woo] KOTRA held an online future car briefing session on the 24th to respond to the reorganization of the global value chain (GVC).

This briefing session, organized by KOTRA in collaboration with the Korea Automobile Manufacturers Association, Korea Automotive Technology Institute, Korea Automobile Industry Cooperative, and Hydrogen Convergence Alliance, was prepared to disseminate rapidly changing future car market trends and explore overseas market entry opportunities for our parts companies.

Last year, global hydrogen and electric vehicle sales surpassed 2 million units for the first time ever, increasing by about 35% compared to the same period last year, and the market growth rate is expected to reach an average annual rate of 29% until 2030. This briefing introduced not only market trends in key markets such as Germany, China, and Japan but also related promotion policies and trends in emerging markets like India and Mexico, where rapid transitions to future car markets are taking place.

Joe McCabe, CEO of Autocast Solutions, a global automotive consulting firm participating as a speaker at this briefing, forecasted that "by 2028, pure electric vehicles will account for about 9% of global vehicle sales," emphasizing that "it is necessary to respond to these market changes."

There was also an introduction to emerging markets that had not received much attention until now. Oscar Albin, president of the Mexico Auto Parts Association, who spoke as a presenter, said, "The North American region has been somewhat slow in adopting eco-friendly vehicles due to low fuel costs and a preference for long-distance driving," adding, "Amid a rapid paradigm shift to catch up with the global market, compliance with origin rules under the United States-Mexico-Canada Agreement (USMCA) will accelerate the reorganization of supply chains focused on the region."

KOTRA held an online "Future Car Briefing on Responding to the Restructuring of the Global Value Chain (GVC)" on the 24th. The photo shows the pre-session of the online briefing held at KOTRA headquarters in Seocho-gu, Seoul. Photo by KOTRA

Additionally, presentations on the business status of future car companies in Germany, the United States, China, Turkey, and cooperation plans with domestic companies followed. Julian Klaus, head of the venture support client 'Startup Garage' operated by BMW Korea, said, "Korea is an advanced startup country with a huge ecosystem," expressing hope for "collaboration with Korea's innovative e-mobility startups."

Following the briefing, video consultations between domestic and foreign companies will be held until the 2nd of next month. This consultation, conducted in a pinpoint manner by discovering the demand of local global companies, will be attended by about 20 global buyers from key markets such as Japan and emerging markets like India and Mexico, seeking to establish cooperative relationships with Korean companies.

Sangmook Kim, head of KOTRA's Innovation Growth Headquarters, said, "The future car market is growing rapidly due to eco-friendly vehicle promotion policies by governments worldwide," and added, "We will actively support capturing various opportunities related to future cars so that domestic companies can take the lead in the future car market."