Chungnam to Foster Small Electric Vehicle Parts Companies... "Laying the Foundation for Industry Transition"

[Asia Economy (Hongseong) Reporter Jeong Il-woong] Chungnam is responding to the paradigm shift in the automotive industry through a project to foster small electric commercial vehicle parts companies.

On the 26th, Chungnam Province announced that over the past two years, it has promoted the Ministry of Trade, Industry and Energy's regional revitalization project, the "Small Electric Commercial Vehicle Parts Company Fostering Project," achieving commercialization sales of 10.9 billion KRW and creating 28 new jobs.

The project focused on responding to changes in the automotive industry such as the expansion of eco-friendly vehicle distribution, shifting the industry from the conventional internal combustion engine vehicles to the eco-friendly vehicle parts industry, and diversifying business partners.

From 2020 to May of this year, the project invested a total of 7.2 billion KRW, including 3.96 billion KRW in national funds, 2.64 billion KRW in provincial funds, and 600 million KRW in private capital, with participation from 62 local companies.

During the project period, participating companies received support for prototype production, core parts design, real vehicle verification and simulation, parts reliability testing, workforce training, and export market development.

For example, Company A, located in Cheonan, received support for real vehicle simulation and core parts design to develop brake discs for domestically produced small electric vehicles.

Based on this, the company is working to enhance performance and discover new business items in line with changes in the automotive industry, while improving business competitiveness through manufacturing cost reduction and diversification of business partners.

The province also signed a memorandum of understanding with Vietnamese government-affiliated organizations and small electric vehicle manufacturers to support local companies' industry transition through mutual technology commercialization cooperation.

Additionally, as a breakthrough for new business transitions such as overseas market development, the province held online export consultation meetings and the Korea-Vietnam Automotive Parts Industry Development Seminar, supporting export consultations worth 19 billion KRW for 15 companies.

Through these efforts, the province explained that last year, exports in the local automotive parts sector increased by 47.9% compared to the previous year, reaching 1.79 billion USD.

A provincial official stated, "To revitalize the automotive parts industry, we will organically cooperate with related institutions and companies such as small electric vehicle manufacturers and continuously discover and promote sustainable projects."

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