Chinese cars to menace S. Korean cars overseas

Shanghai, June 23 (Gasgoo.com) A new study by Korea Automobile Manufacturers Association, or KAMA, on the challenge brought by the rapid growth of the Chinese auto industry sounds a cautionary note that China can overtake South Korea in terms of vehicle sales and export by 2010.

The study finds that China only exported 16,537 cars in 2002 but the volume has topped 346,800 units and 636,777 units respectively in 2006 and 2007. The country is forecast to sell 1.4 million vehicles abroad by 2010.

It says that under strong financial support from local governments, Chinese automakers are fast measuring up to quality expectations of overseas markets including North America and Europe.

In conclusion, the study notes that South Korea can only compete with Chinese automakers by developing vehicle models that global consumers demand, and making efforts to match the R&D capabilities of Japanese and German automakers.