A self-driving minibus developed by Unmanned Solution. (image: Seoul Metropolitan Government)
SEOUL, Dec. 15 (Korea Bizwire) — South Korean auto parts makers are lagging behind in the transition to future mobility solutions despite the automobile industry’s rapid switch to electrification in recent days, a survey showed Tuesday.
According to a survey conducted by the Korea Automotive Industry Alliance (KAIA) of 300 auto parts makers and 405 workers in the automobile industry, 56.3 percent of the companies have not yet entered the future car market, which includes, among others, eco-friendly vehicles, self-driving vehicles and connected cars.
The share of the companies that had launched products related to the future car business but still failed to make profits reached 23.7 percent.
Among the 131 companies which had made the pivot to future cars, 35.5 percent replied that it took more than five years for them to start mass-producing products.
The time required to launch mass-production of future car-related auto parts averaged 13 months, much shorter than the previous survey’s 33 months.
In response to a question asking about the stumbling blocks in future car-related R&D, 47.3 percent pointed out the shortage of capital as a major hurdle, followed by a shortage of skilled labor at 32.1 percent and technology deficiencies at 13 percent.
When it came to the stumbling blocks in facility investment, an overwhelming share of 77.9 percent pointed out the shortage of capital as the biggest obstacle.
This figure is higher than the 63.9 percent reported in last year’s survey, indicating that financial barriers have worsened.
Kevin Lee (kevinlee@koreabizwire.com)
