In the early stages of its entry into the Chinese market, Hyundai Motors enjoyed such popularity that it had to quickly increase production facilities.

At one time, more than half of taxis in downtown Beijing were occupied by Hyundai Motors, and thanks to this success, it took the second place overall in the Chinese market in 2009.



However, 10 years later, Hyundai Motor and Kia sold 530,000 units last year, with a market share of only 2.7%.

The Chinese government's economic retaliation, which began after USFK deployed the high-altitude missile defense system and THAAD in 2016, also seems to have had an impact to some extent.

But is that all?


Is Chinese tea cheap?

One of the areas where Hyundai Motor has had a hard time entering the Chinese market is the SUV.

Although the number of SUV models has increased recently, it is known that there were not many SUV types at one time and struggled.

In China, the demand for SUVs is high for various reasons, including road conditions.

The strongest player in the SUV market is Changchung Motors.

Compared to the world's leading brands, it has an edge in price-performance ratio.



So, is it 'just a car that Chinese people without money drive'?

If you know that, I think you need to reconsider.

The background to Changchung's success was technical support from our company.

Changchung struggled with light-weight technology while developing a new SUV in 2014.

We expanded the market with initial price competitiveness, but encountered a limit, and it was POSCO that stepped in.

Manpower was dispatched from the Headquarters Steel Solution Marketing Office and POSCO China to help reduce the weight of new cars as well as improve performance and reduce manufacturing costs.



Besides these formal technical cooperation, Chinese cars have their own strategies for technological development.

This is a story told by an acquaintance in the automobile industry before about how China is developing technology.

It is said that the most difficult part of car development is not the engine, but the transmission and transmission.

For example, if you say that you need 4 core skills to develop a transmission, you'll only need to tell us one of the 4 things because we'll go around the major companies for your convenience.

Each company has one, but in the end, they have four skills and can close the skill gap without difficulty.


Chinese tea catches up with Korea in export market

Such a strategy has been the basis for China's nearly doubling of automobile exports last year.

It is now on par with Korea.

According to China's Ministry of Industry and Information Technology, China's finished car exports last year reached a record high of 2,015,000 units, double the previous year.

This is a 90.1% increase from 1.06 million units in 2020 to more than 950,000 units in one year.

According to the statistics of the Ministry of Trade, Industry and Energy, Korea exported 1.86 million cars from January to November last year, so it seems to be almost the same.



After exceeding 3 million units for the first time in 2011, Korea's automobile exports peaked at 3.15 million and then went downhill to 1.89 million units in 2020, down 21.4% from the previous year's 2.4 million units.

Of course, the progress of Chinese cars is due to the government's policy to encourage export of automobiles, but it is also true that the quality of products made by Chinese manufacturers has improved greatly.



Can ignoring be a skill?

In 2012, during the territorial dispute on the Senkaku Islands (Chinese name: Diaoyu Islands) between China and Japan, Japanese companies suffered as much damage as South Korea's THAAD retaliation.

However, Toyota currently ranks third in China's market share after Volkswagen and GM.

Blaming the political environment alone is not the solution in limitless competition between companies.



To the Chinese, Japanese cars are known as sturdy and fuel-efficient cars.

Used car prices are also good.

It is not very different from the image of Japanese tea in the United States.

Korean cars were very popular in the 2010s due to their cost-effectiveness, but now the brand value itself has fallen a lot.

In the case of Hyundai Motor Company, it was pushed down to 12th place last year.



Of course, the Chinese market is also a treasure trove for companies.

An industry insider said that in the Chinese market, no matter how much money you make, it does not lead to profits.

If you want to do business in China, you have to make a 50:50 corporation, but even if you make a profit, you can reinvest in China, but you can't send the profits back to your home country.



There are not one or two difficulties in entering the Chinese market, such as political risks and economic closure, but China is a huge market that cannot be ignored.

However, the Chinese market is not limited to China, but Chinese companies that have grown their strength in the Chinese market may eventually threaten the global market and beyond, even the domestic market.

Isn't it an ignorance of reality to ignore Chinese cars just because you can't see them in our city right now?



(Photo = Getty Images Korea)