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At the end of 2022, South Korea entered the top three leading countries in terms of auto parts exported to Russia. And how many of these same “Koreans”
On average, the cost of Korean-made auto parts increased by about a quarter over the year. However, in recent months, prices have begun to fall: according to retail offer aggregators, the “originals” have fallen in price by 10-15%, if we compare current prices with those in force in October. And this, as Mikhail Martynov, development director of the Koreana network, explained to the AvtoVzglyad portal, is associated exclusively with adjustments in the exchange rate. In addition, competition in the market has increased as major players have returned, which has also had an impact on pricing.
Now how do service centers and auto parts stores get parts from the Land of Morning Calm? Independent workshops order them directly from Korean suppliers, and official dealers order mainly from representatives of car brands. As we were told in Klyuch Avto, the Russian offices of Hyundai and Kia are working as before, and the service coefficient of their warehouses today exceeds 90%.
It seems that there are no problems – and the prices are adequate and there are enough supply channels. However, there are still difficulties.
According to Sergey Demidov, vice president of auto insurance at Renaissance Insurance, spare parts delivery times have increased significantly recently – some parts have to wait up to three months. And this applies not only to rare cars, but also to quite ordinary cars – such as Hyundai Solaris or Kia Ceed. There is an acute shortage of “bodywork”, original Korean oils. And a number of other, “locksmith” positions.
For example, even official dealers can no longer get CVT for Kia Seltos, because they are simply not left in the car manufacturer’s central warehouse. And parallel imports in such a situation also do not save, says Alexander Prikhodko, development director of CardanBalance, the logistics chain becomes too long, which negatively affects the final price of the unit and delivery times.
— To solve this problem, many Russian companies resort to importing car parts from third countries, including China and Belarus. And while this may seem like a good idea at first glance, problems often arise due to the differences between Russian, Korean and Chinese parts. The latter may simply not fit if they are not compatible with the car, says our interlocutor.
According to Mikhail Martynov, development director of the Koreana network, in most cases Chinese spare parts still do not “conflict” with Korean cars that “run” on Russian roads. Another problem is that you cannot import “originals” from China – they are produced there, but it is forbidden to export parts abroad. So you can only rely on analogues: there are enough of them, and the quality is no longer in question among the mechanics.
As for the tightening of export controls on Russia and Belarus introduced by the Ministry of Commerce of South Korea, according to which the list of “restricted” goods has been expanded from 57 to 798 positions, with parts for cars worth more than than $50,000 are committed, it won’t impact the domestic spare parts market globally, experts say. Although some changes are still worth waiting for.
For example, Klyuch Avto assumes that the tightening of control will give new impetus to the development of supplies under the parallel import scheme, which may increase the cost of Korean auto parts, since the final price will include the cost of logistics services.
The same opinion is shared by the company “KardanBalance”. They predict that prices could increase by 40-50% for some items. Although, it would seem, where else? For example, official dealers are already asking for windshields for Kia and Hyundai crossovers from 110,000 rubles. And this is without taking into account the cost of the work. It is not surprising that more and more Russians are abandoning the “originals” in favor of analogues.
Many owners of budget “Koreans” have long since switched to cheaper Chinese alternatives, the Korean confirms. And the supply of parts from China will only increase. So globally, the domestic auto parts market will not feel the effects of the tightened control from South Korea. What is forbidden in the republic will be brought from China.
That the trend for the supply of Chinese spare parts will become stronger has also been agreed in the insurance company Renaissance. Moreover, they assume that the Korean segment will be completely pushed out of the market in the foreseeable future. Worldwide – not just in the context of components. Indeed, for the same money, the Chinese already offer more interesting cars from the equipment point of view, and confidence in the “heavenly” auto industry is gradually growing.
On average, the cost of Korean-made auto parts increased by about a quarter over the year. However, in recent months, prices have begun to fall: according to retail offer aggregators, the “originals” have fallen in price by 10-15%, if we compare current prices with those in force in October. And this, as Mikhail Martynov, development director of the Koreana network, explained to the AvtoVzglyad portal, is associated exclusively with adjustments in the exchange rate. In addition, competition in the market has increased as major players have returned, which has also had an impact on pricing.
Now how do service centers and auto parts stores get parts from the Land of Morning Calm? Independent workshops order them directly from Korean suppliers, and official dealers order mainly from representatives of car brands. As we were told in Klyuch Avto, the Russian offices of Hyundai and Kia are working as before, and the service coefficient of their warehouses today exceeds 90%.
It seems that there are no problems – and the prices are adequate and there are enough supply channels. However, there are still difficulties.
According to Sergey Demidov, vice president of auto insurance at Renaissance Insurance, spare parts delivery times have increased significantly recently – some parts have to wait up to three months. And this applies not only to rare cars, but also to quite ordinary cars – such as Hyundai Solaris or Kia Ceed. There is an acute shortage of “bodywork”, original Korean oils. And a number of other, “locksmith” positions.
For example, even official dealers can no longer get CVT for Kia Seltos, because they are simply not left in the car manufacturer’s central warehouse. And parallel imports in such a situation also do not save, says Alexander Prikhodko, development director of CardanBalance, the logistics chain becomes too long, which negatively affects the final price of the unit and delivery times.
— To solve this problem, many Russian companies resort to importing car parts from third countries, including China and Belarus. And while this may seem like a good idea at first glance, problems often arise due to the differences between Russian, Korean and Chinese parts. The latter may simply not fit if they are not compatible with the car, says our interlocutor.
According to Mikhail Martynov, development director of the Koreana network, in most cases Chinese spare parts still do not “conflict” with Korean cars that “run” on Russian roads. Another problem is that you cannot import “originals” from China – they are produced there, but it is forbidden to export parts abroad. So you can only rely on analogues: there are enough of them, and the quality is no longer in question among the mechanics.
As for the tightening of export controls on Russia and Belarus introduced by the Ministry of Commerce of South Korea, according to which the list of “restricted” goods has been expanded from 57 to 798 positions, with parts for cars worth more than than $50,000 are committed, it won’t impact the domestic spare parts market globally, experts say. Although some changes are still worth waiting for.
For example, Klyuch Avto assumes that the tightening of control will give new impetus to the development of supplies under the parallel import scheme, which may increase the cost of Korean auto parts, since the final price will include the cost of logistics services.
The same opinion is shared by the company “KardanBalance”. They predict that prices could increase by 40-50% for some items. Although, it would seem, where else? For example, official dealers are already asking for windshields for Kia and Hyundai crossovers from 110,000 rubles. And this is without taking into account the cost of the work. It is not surprising that more and more Russians are abandoning the “originals” in favor of analogues.
Many owners of budget “Koreans” have long since switched to cheaper Chinese alternatives, the Korean confirms. And the supply of parts from China will only increase. So globally, the domestic auto parts market will not feel the effects of the tightened control from South Korea. What is forbidden in the republic will be brought from China.
That the trend for the supply of Chinese spare parts will become stronger has also been agreed in the insurance company Renaissance. Moreover, they assume that the Korean segment will be completely pushed out of the market in the foreseeable future. Worldwide – not just in the context of components. Indeed, for the same money, the Chinese already offer more interesting cars from the equipment point of view, and confidence in the “heavenly” auto industry is gradually growing.
Source: Avto Vzglyad
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.
