China ripe for S. Korean auto parts growth

Dec. 19, 2012 at 12:32 PM
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SEOUL, Dec. 19 (UPI) -- South Korean auto parts companies are likely to experience earnings growth due to an expanding market in China, market analysts said.

"We believe that China will continue to post leading global auto sales growth in 2013 thanks to the Chinese government's likely introduction of economic stimulus and capacity expansions via joint ventures with overseas automakers," said Cho Soo-hong, an analyst with Woori Investment & Securities.

Yonhap reported Wednesday that vehicle sales from January through November rose 6.9 percent compared with the first 11 months of 2011.

Auto parts capacity among South Korean companies in China will get a significant boost in July with the start-up of Hyundai Motor Co.'s third plant in China.

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