KOTRA Leads Domestic Auto Parts Companies' Entry into China... Hosts 'GP China'

[Asia Economy Reporter Suyeon Woo] KOTRA announced on the 9th that it will hold 'Global Partnering China (GP CHINA 2021)' until the 30th of this month to expand opportunities for Korean companies to enter the Chinese automobile market. The GP (Global Partnering) project is a program that supports Korean small and medium-sized enterprises (SMEs) and mid-sized companies in establishing cooperative relationships with global companies and entering the global value chain (GVC) stably.

This event includes participation from leading Chinese automakers such as Geely and Beijing Automotive (BAIC), domestic automobile parts companies including hydrogen vehicle parts, and Korean investment companies that have entered China. Starting with local consultations in Shanghai, China, on the day of the event, online and offline consultation meetings between domestic companies and Chinese automobile companies will be held until the end of this month.

China's eco-friendly vehicle market is rapidly growing due to government subsidy support and the spread of eco-friendly consumption trends. In November last year, the Chinese government announced plans to increase the share of eco-friendly vehicle sales to 20% of total sales (about 6 million units) by 2025. Thanks to the Chinese government's support policies, eco-friendly vehicle sales in China last year recorded 1.36 million units, an increase of more than 10.6% compared to the previous year.

Meanwhile, Chinese automakers prefer local suppliers to secure stability in parts supply and are striving to localize parts production. This is why prompt responses from Korean companies considering local circumstances are necessary.

At the local seminar for companies entering China held on the day, a Shanghai GP consultant and a representative from Beijing Hyundai Motor gave presentations on the current status of the Chinese market and strategies for Korean companies' entry. They proposed detailed strategies such as expanding cooperation with Chinese parts suppliers, securing technological superiority compared to Chinese companies, and collaborating with local specialized after-sales service platforms as ways to cooperate with global companies in China.

Kim Sangmook, Head of KOTRA's Innovation Growth Division, said, "Various collaborations with local companies are important for Korean companies to enter the Chinese automobile market," adding, "We will create a platform for cooperation between Korean and Chinese companies through one-on-one consultation meetings and entry strategy seminars held over the next three weeks."

This content was produced with the assistance of AI translation services.