One household in Korea owns two cars: data

[THE INVESTOR] The number of registered cars in Korea is expected to exceed 20 million units this month, which means each four-person household owns two cars on average, the Ministry of Land, Infrastructure and Transport said on June 21. The current figure at 19,964,178 units could top 20 million within this month, the ministry said, considering the recent growing trend in the number of registered passenger cars here. Hyundai Motor’s brand store in Dosandaero, southern Seoul.Sedan cars totaled 1

June 21, 2016

Samsung Electronics launches new automobile lighting package

[THE INVESTOR] Samsung Electronics has launched the Flexible Chip Scale Package for automotive LED lighting, seeking to accelerate its market share, the company said on June 21. The package allows a compact design to be built in a position lamp or a headlamp with wide beam angle and low thermal resistance according to the company.  The company expects the package to cater to automotive lighting that requires huge intensity of radiation based on different usage.  Flexible Chip Scale PackageThe co

June 21, 2016

Korea to fine Volkswagen W80b: report

[THE INVESTOR] Korea’s antitrust agency will fine Volkswagen around 80 billion won (US$ 68.9 million) for deceiving customers with false advertisements in the German automaker’s emission rigging scandal that affected millions of cars globally, including here. The state-run Fair Trade Commission is probing VW’s false advertisement claims, the agency’s head Jeong Jae-chan said in an interview with local media on June 21. The agency has looked into VW’s advertisements from 2009 to 2015, which toute

June 21, 2016

Tesla set to start sales in Korea

[THE INVESTOR] The US electric car manufacturer Tesla Motors is hiring new staff, including shop manager, sales advisor and software engineer, to work in Seoul, hinting that its first Korean store is imminent. Tesla has long gauged the marketability of full-electric sedans in a market where Hyundai and Kia cars dominate almost 70 percent of total car sales, even though it has continued supply talks with Korean battery and display makers. Tesla Model 3 prototype.In November last year, the firm re

June 21, 2016

Hyundai, Kia merge China departments

[THE INVESTOR] The Chinese operations of Hyundai Motor Group’s two carmakers have been placed under a single control tower as the group seeks to strengthen operations in the world’s largest automotive market. According to the carmakers, Beijing Hyundai Motor, Dongfeng Yueda Kia, and China marketing divisions of Hyundai Motor and Kia Motors have been placed under the body that oversees the group’s operations in China.The organization in charge of the group’s operations in China is headed by Kim T

June 21, 2016

Korea-US FTA boosts US car sales in Korea

[THE INVESTOR] US carmakers’ sales in Korea overtook that of Japan for the first time in 2015, industry data showed on June 20. The change is thought to have been brought on by the Korea-US free trade agreement implemented in 2012. Following the FTA, the tariff on US-built vehicles was initially cut from 8 percent to 4 percent. From this year, the tariff has been completely removed. Ford New kuga 2016.According to Korean and Japanese automobile importers’ associations, US marques’ Korean sales c

June 20, 2016

VW gasoline customers to file criminal charges

[THE INVESTOR] Korean customers of Volkswagen’s gasoline vehicles are set to file criminal charges against Audi Volkswagen Korea. The move comes in the wake of the recent disclosure by prosecutors that the German carmaker rigged software of its gasoline cars to cheat on emission tests, local news reported on June 19. “Following the diesel vehicle scandal, it has been revealed that gasoline cars were also manipulated. We plan to gather victims here and file a lawsuit against Audi Volkswagen Korea

June 20, 2016

City cars favored over compact sedans: data

[THE INVESTOR] City cars, such as the Chevrolet Spark and Kia Morning, are enjoying popularity among Korean drivers as carmakers are offering aggressive promotions to new buyers, industry data showed on June 20. According to the Korea Automobile Manufacturers Association, a total of 72,151 subcompact cars were sold in the country through May this year, compared with 69,978 compact sedans sold during the same period. The best-selling city car Chevrolet Spark.There are three such car models -- the

June 20, 2016

Hyundai Motor still lukewarm in car-sharing, ride-hailing business

[THE INVESTOR] Global automakers are seeking to transform from mere car manufacturers into transportation providers -- offering diverse auto-related services such as car-sharing and ride-hailing services -- amid growing concerns that self-driving technology may bring down car sales in the future.  This year, several auto giants have aligned themselves with tech firms or announced mobility plans, although Korean automakers including Hyundai Motor and Kia Motors have not yet made any big deals in

June 19, 2016

Hyundai Motor cars to support Apple’s CarPlay

[THE INVESTOR] Korean automotive giant Hyundai Motor Group will be offering Apple’s CarPlay system in its vehicles sold here, starting with the Hyundai Sonata sedan this month. CarPlay aims to allow drivers to connect their iPhone to their cars’ infotainment system, making it easier and safer to use apps on their mobile phones, including GPS. Apple’s CarPlay in the Hyundai SonataHyundai Motor also seeks to attract more iPhone users by increasing CarPlay-compatible models, including the new Grand

June 19, 2016

Kia Motors named as highest quality brand in US

[THE INVESTOR] Kia Motors, the nation’s No. 2 carmaker, has recently been named one of the highest quality brands in the US, according to a leading automotive research company on June 18. According to Strategic Vision, Kia’s Sorento mid-size crossover utility vehicle and the Sedona minivan gained the highest scores on its Total Quality Impact, the automotive industry’s most complete measure of the quality of a new vehicle, in respective segments.  Kia Motors’s Sedona minivanThe research firm sur

June 19, 2016

Prosecutors say VW’s HQ ordered emissions manipulation

[THE INVESTOR] German carmaker Volkswagen’s headquarters ordered the manipulation of emissions tests for vehicles imported into Korea, Seoul prosecutors said on June 17. The investigators have secured evidence that German officials ordered the manipulation of software in the seventh generation Volkswagen Golf to secure approval from Korea’s National Institute of Environmental Research. Under local laws, all imported cars have to receive approval from the state-run agency of their emission result

June 17, 2016

Hyundai, Kia May sales rise in Europe

[THE INVESTOR] Hyundai Motor Group -- comprising Hyundai Motor and Kia Motors -- saw significant sales rise in Europe in May, a research report showed on June 17. The report by Hana Financial Investment showed that Hyundai Motor’s sales rose 18 percent from the same month last year, while Kia’s figures increased 16 percent. The combined sales of both carmakers rose 17 percent. Tucson.For Hyundai Motor, the compact sport utility vehicle Tucson led the rise with sales jumping 46 percent from a yea

June 17, 2016

Will Hyundai tap into diesel cars?

[THE INVESTOR] Even as speculation that Hyundai Motor will add a diesel vehicle to its luxury brand Genesis lineup is growing, a company official said nothing has been confirmed on June 16.Genesis -- which became a standalone brand last November -- unveiled G80 for the first time at the latest Busan International Motor show on June 2. After the show, local media reported that the diesel version of G80 will be released next year, in a move seen to beat out European luxury carmakers here and abroa

June 16, 2016

Hyundai to recall 62,319 Tucson vehicles

[THE INVESTOR] Top Korean automaker Hyundai Motor plans to recall 62,319 units of its Tucson sport utility vehicle lineup due to a faulty hood lock system, the Transport Ministry said on June 16. The model’s secondary hood latch remains in the wrong position when the hood is closed, as a result of which it may unexpectedly open while driving, the ministry said.The problem has been found in 62,319 Tucson SUVs manufactured between March 15, 2015, and March 15, 2016.Hyundai Motor will take responsi

June 16, 2016

Hyundai Motor may partner with Uber

[THE INVESTOR] U.S.-based ride-hailing service provider Uber Technology’s employees attended Hyundai Motor’s autonomous technology seminar Wednesday, the automaker confirmed, raising speculation of the two firms’ possible tie-up in the self-driving sector. “It is true that Uber’s working-level employees have joined a two-day autonomous technology seminar held in Hyundai’s research center,” a Hyundai Motor spokesperson told The Korea Herald by phone. The closed-door seminar was held together with

June 16, 2016

Hyundai Motor to release EV Ioniq soon

[THE INVESTOR] The nation’s largest automaker Hyundai Motor will soon roll out its electric vehicle Ioniq Electric, local news reported June 16. Ioniq Electric, the automaker’s first electric vehicle in the lineup of its eco-friendly car brand Ioniq, will soon be delivered to customers who preordered in cities across the country, including Jejudo Island, among others. Ioniq ElectricThe latest EV boasts an official driving range certification of 191 kilometers on a single charge, the longest mile

June 16, 2016

EU on alert over Korea’s stance on diesel cars

[THE INVESTOR] European countries are on alert after the Korean government decided to curb diesel-fueled cars as part of measures to counter fine dust in the country. The European Commission, the executive body of the European Union, has put Korea’s diesel-related measures as one of the agendas to discuss during its regular meeting next week, according to a report by local media Herald Business, which cited a government official. The move indicates that the countermeasure will be a serious hit t

June 15, 2016

Hyundai Motor may partner with Uber

[THE INVESTOR] U.S.-based ride-hailing service provider Uber Technology’s employees attended Hyundai Motor’s autonomous technology seminar Wednesday, the automaker confirmed, raising speculation of the two firms’ possible tie-up in the self-driving sector. “It is true that Uber’s working-level employees have joined a two-day autonomous technology seminar held in Hyundai’s research center,” a Hyundai Motor spokesperson told The Korea Herald by phone. The closed-door seminar was held together with

June 15, 2016

[ANALYST REPORT] Auto parts: Formerly sidelined players gaining attractiveness

 Firms with robust top-line growth generally command high valuation multiples, but often see shares plunge if sales stall or profitability deteriorates, and even if such adversity is overcome, shares can rebound sharply even if valuation multiples do not. We focus on stocks with low price-to-sales ratios (P/S)—overly punished for flaws—that boast solid top-line growth and thus provide investment opportunities.Firms with robust top-line growth generally command high valuation multiples, but often

June 15, 2016