South-North economic cooperation, expected to grow businessConstruction trucks such as dump and mixer truck will be the forefrontSouth-North economic cooperation, transportation and infrastructure would be a priorityAt the last inter-Korean summit, there were discussions on economic cooperation on various areas such as roads, railroads, ports, and minerals. In particular, the transport areas such as roads and railroads were considered as a top priority. The reason is that the foundation for human and material resources need to be made in preparation for economic cooperation vitalization. Preparation situations are positive to some extent. The government made more than 300 billion won per year for inter-Korean cooperation fund, and the balance of accumulated cooperation fund amounts to 100 billion won with no difficulty in pushing for a short-term project. Overall development plan's outline is revealed. What is considered as a priority engineering work are 'Gyeongwon rail line renovation (204.3 billion won)' and 'Gyeongui rail line renovation (107.9 billion won)'. New construction (2 trillion won) between Gangreung and Jaejin for connecting Donghae line is known to be included in the Panmunjeom consultation matters. Road construction is also subject of review. The Ministry of Land, Infrastructure and Transport is reviewing constructions of 'Gaeseong-Munsan highway' and 'Pyeongyang-Incheon air route'. Besides, as there are many areas requiring large-scale engineering works such as ports, electricity, communication, and resource development, a boom in domestic construction is expected when inter-Korean cooperation is facilitated. Speedway in Pyeongyang of North Korea. Is is hard to say to 'Speed way'. Infrasturcture of North Korea for speed way is only for 1/4 of South Korea and pavement rate is only 10%. It needs large size of SOC construction.Dump and mixer trucks expected to advance firstFor vitalization of large-scale constructions such as transport infrastructure establishment and resource development, the advance of construction trucks directly placed into construction sites cannot help being considered. Dump trucks, mixer trucks, and concrete mixer trucks which are able to take responsibility for building bridges are the subjects. That is the reason why as a role of an advance guard, construction trucks are anticipated. Demands for commercial vehicles will be rapidly increase if inter-Korean economic cooperation is can be solved in well.Expectation for industry vitalization of domestic commercial vehiclesTransport infrastructure establishment is expected to have a great influence not only on freight movement industry, but also on the overall industry of domestic commercial vehicles. What is first expected is the revitalization of secondhand commercial vehicle market. The commercial vehicles that are not allowed to be operated because they fail to meet the emission regulations(Euro6 type C) in South Korea may enter the North Korean market.When the market for secondhand commercial vehicles is revitalized, the demand for buying new commercial vehicles after exchange or scrapping can be increased, the industrial officials said. Industrial officials also say 'under the situation which there is no particular factor to expect an economic boom on Korean market, inter-Korean economic cooperation is expected to serve as a breakthrough.' and added that 'for the manufacturers, when many secondhand commercial vehicles are sold, license plates for business are left as many as sold commercial vehicles, leading to expectation for virtuous cycle effect'. The possibility that commercial vehicle brands' enormous advance into Korea is also will be raised. When economic exchanges between South Korea and North Korea is facilitated, there would emerge companies which try to enter North Korea's market based on South Korea, as the analysis goes. For companies, it is reasonable to make inroads into markets after establishing foothold rather than directly investing in North Korea where there are high risks and insufficient infrastructure. Moreover, the purchase of commercial vehicles by companies which relate with inter-Korean economic cooperation business are also expected to grow.
In February, Korean government announced 'Work Process Guidance of Lane Departure Warning System Attachment Support', which outlines subsidy support for attaching 'LDWS(Lane Departure Warning System)' including FCWS (Forward Collision Warning System)'. Accordingly, fierce competition is expected among ADAS(Advanced Driver Assistance Systems) suppliers for market preoccupancy. Subsidies worth 60 billion won for 170,000 units of commercial vehicles by 2019The Ministry of Land, Infrastructure, and Transport is going to provide 170,000 units of commercial vehicles including buses of more than length 9M, cargo truck and special purpose commercial vehicles of more than 20 ton currently under operation with 80% of the installment expense per one unit or a maximum of 400,000 won. By 2019, 30 billion won by every year, a total of 60 billion won worth of installment subsidy will be provided. Commercial vehicle business expects that a market of around 100 billion won worth would be created in consideration of the fact that the vehicles subject to the subsidy except for subsidy in the product price is 70%. Accordingly, by 2020 when LDWS installation obligation is started, unlimited competition among ADAS companies is expected. By May, the companies which had report card of a test organized by Korea Transportation Safety Authority for acquiring the qualification for LDWS subsidy include 7 companies such as Daesung Eltec Inc., AdasOne Inc., PLK Technology Inc., CleanEarth Inc., Mobile Appliance Inc., Movon Corporation, and Mobileye. Besides the companies acquiring the qualification for the subsidy, other companies also preparing for certificate test such as Essys Inc., and Thinkware Inc. Totally, about 10 companies will be expected to compete with each other.
FE, following FH, FM and FL, is expected to lead the cargo market.Released 9.5 ton(6×4) and 5 ton(4×2) Cargo Models Volvo Truck Korea, which leads the import truck market in Korea, released semi-large truck ‘Volvo FE Series’. Therefore, the company has completed Volvo Truck Cargo Full Line-up(loading weight 4.5 ton ~ 27 ton) from FH and FM series to FL series. Volvo Fe Series is a semi-large model that combines the efficiency of large truck and functional rationality of medium truck. Volvo Fe Series, as its name indicates, has enough indoor space by being equipped with cap of large truck size, and has 12-speed transmission, the most powerful power train in the same level, along with 350 horse power engine. In addition, the performances of the chassis, which is a core structure of vehicle, and cap(cabin), which determines indoor space, were proved in the advanced market of Europe, where semi-large segments are developed. Volvo FE Series is expected to provide various options to customers such as distribution companies and special vehicle companies that look for suitable detailed models for types of transported cargo and types of businesses.
Ministry of Land, Infrastructure, and Transport, Includes Subjects of Subsidy Input to Farming and Fishing Villages from Next Year Ministry of Land, Infrastructure, and Transport Ministry of Land, Infrastructure, and Transport (Minister: Kim Hyeon-mi) starts to establish system for adoption of ‘medium size low floor bus’.Ministry of Land, Infrastructure, and Transport announced to establish advance legislation notice and revised plans of enforcement ordinance and enforcement regulation of ‘Promotion Law for the Travel Convenience of Transportation Vulnerable’ with the above details included. The main contents of the revised plan are focused on organizing detailed guidelines for adoption of medium size low floor bus. First of all, the medium size low floor bus is included in the subjects of government’s subsidy, and installment of manual inclination plate as well as automatic inclination plate, which has frequent problems, is allowed. Ministry of Land, Infrastructure, and Transport said “Current low floor buses can’t be operated on the curved and narrow roads, so it is impossible to be operated in farming and fishing villages. When medium size low floor buses are operated, the transportation vulnerable can use public transportations conveniently.”
ISUZUE Expands Service Networks from 8 to 17 This year, over twiceGoal is Customer Satisfaction with Stable Part Supply and 24 Hour Dispatch ServiceThe efforts of Curo Motors(president: Kim Seok-ju), the official seller of ISUZU the Japanese commercial vehicle brand, to improve the service quality seems to pay off. Curo Motors decides to try hard in customers’ repair services to meet the increasing demands of 3.5 ton mid-sized truck ELF. Isuzu Service center in Daejeon cityOne of the products by these efforts is the number of service centers that rapidly increased.At the end of last year, the number of ISUZU service centers was 8, and now it is 17 as of April, which is twice more. Curo motors recently established 'Isuzu parts logistics center' on Pyeongtaek cityThe number is 5 more than the company’s initial plan to increase to 12 until the first half of this year.The company continues to expand, so customers’ expectation is getting high.
New registration for small parcel service vehicles of under 1.5t will be start from May. Ministry of Land, Infrastructure, and Transport decided ‘Allowing Cargo Truck Transportation Business for Parcel Service’ that contains the above detail and will enforce from May. The relevant vehicles are cargo vehicles of under 1.5t (van type, car-top regular type, special purpose type), and when the law is enforced, parcel businesses can increase the number of the relevant vehicles. An authority of Ministry of Land, Infrastructure, and Transport said “There was over 10% of continuous increase of volume, but allowing business parcel service vehicles was limited, leading to lack of vehicles. This increase will improve the quality of parcel cervices and contribute to creating new jobs.” Meanwhile, freight trucks other than parcel service vehicles are limited in new allowance, so the relevant trucks will be strictly punished if they are used for other purposes than parcel services.
Last year’s TBR import 36.0%↑, domestic brands slaes 9.2%↓Chinese products account for 56% of whole imports, dominating the market of replaceable tiresWhile Truck & Bus Radial Tire(TBR tire) of Chinese brands are rapidly eating domestic market, the sales of domestic replaceable tires are drastically declining. Therefore, all imported tire companies in addition to domestic tire businesses string up their nerves towards Chinese TBR tires.With the lead of Chinese products, the highest import rate was recorded last year in history.According to the commercial vehicle industry and Korea Tires Manufacturers Association(KOTMA), the amount of importing TBR tires that are installed in mid-large size trucks and buses was over 815,600 units last year, which is 36.0% increase from the same period of the previous year (599,676 units).This is the highest import and the highest increase rate. The amount of imports was over $132,260,000(141.6 billion won). The import of TBR tires, which shows rapid growth tendency, is led by Chinese products. Actually, about 56.3%(459,106) of total import amount was ‘Made in China’. This is more than twice (107.1%) increase from the previous year (221,725 units).TBR tires of China are followed by those of Thailand (217,268 units), Germany (33,203 units) and Japan(18,298 units). In the growth of imported goods, both domestic market and exporting of domestic brands are in recession.While imported tires are growing in the market, the sales of domestic brands’ TBR tires were only 3,840,000 units both in domestic market and exporting market.This is 9.2% decrease from the same period of the previous year (4,235,000 units). However, in the recession of the overall sales, sales of tires for new vehicles were 359,000 units, which is about 6.5% growth.
Daimler truck KOREA make a contract for 'PDI Center'Daimler Trucks Korea (president: Cho Gyu-sang) that imports and sells commercial vehicles of Mercedes-Benz, the one of the world famous commercial vehicle brand, will build an exclusive delivery center for commercial vehicles of Mercedes-Benz and relocate to Asan, Chungnam from Hwaseong, Gyeonggi-do in January, 2019.50 billion won of total investment…twice bigger than the existing center The new exclusive delivery center for commercial vehicles of Mercedes-Benz relocated in January, 2019 will be located in Asan, Chungnam(Songchun-ri, Eumbong-myeon). It is 50,900㎡ (around 15,400 pyeong) and twice bigger than the existing center located in Hwaseong, Gyeonggi-do with 132,000㎡(around 40,000 pyeong). The exclusive delivery center for commercial vehicles of Mercedes-Benz will be the biggest dimension among import commercial vehicle businesses in Korea.
25.5t dump trucks that enjoyed booming in 2016 59%↓ from the same period of the previous year, 16%↓ from the previous quarter 15t dump trucks increase, mixer trucks still well in the marketAccording to the analysis of Ministry of Land, Infrastructure, and Transport, dump trucks of 15t under maximum payload (under 15t classified by Ministry of Land, Infrastructure, and Transport) and mixer trucks increased their new registrations despite the recession of construction business, but dump trucks of 25.5t (under 30t classified by Ministry of Land, Infrastructure, and Transport) declined sharply.■ Dump TruckThe number of newly registered 15 ton and 25.5 ton dump trucks is 686 together, which is 51.2% decrease from the same period of the previous year(1,413 units) and 12.5% decrease from the previous quarter(826 units during the 4th quarter of 2017).The decrease range is considerable, so it is expected that the dump truck market is in the serious recession.Dump Trucks of over 25.5 ton Swayed by the Construction BusinessThe most sensitive vehicle type to the construction business is 25.5 ton dump truck.The newly registered 25.5~27 ton drive shaft(8x4) models during the first quarter are 513 units, which is 58.8% decrease from the same period of the previous year(1,248 units) and 15.9% decrease from the previous quarter(620 units).Retrogression of Large Size due to Increase of 15 ton Dump TruckCompared to the decline of large dump trucks, 15 ton(6x4) dump trucks’ new registrations showed the opposite trend.15 ton dump trucks during the first quarter are 173 units, which is 4.8% increase from the same period of the previous year(165 units) and 1.2% increase from the previous quarter(171 units).It is a contrast from 25.5-ton dump trucks that show decline.
The ratio of fully automatic transmission reached 30% in County and Lestar, the mid-sized buses, in three years. Over 2,000 vehicles with fully automatic transmission.Allison automatic transmission shows remarkable growth in the mid-sized bus market, preparing to be installed in many vehicles from 4.5t medium trucks to 25.5t large trucks and buses. According to independent study of Allison, the ratio of choosing fully automatic transmission is over 30% in domestic mid-sized models such as County of Hyundai and Lestar of Zyle Daewoo as of April, 2018. This is the accomplishments in 3 years and 2 years respectively after the company provided products to County of Hyundai and Lestar of Zyle Daewoo, and there are over 2,000 units of mid-sized buses that Allison has provided fully automatic transmission. Considering the characteristics of mid-sized buses that have to deal with both cruising in the freeway and driving in the traffic congestion, economic feasibility and driving convenience are important, and Allison’sautomatic transmission satisfies consumers’ demands. ‘Smart’ is the essential element of fully automatic transmission. The change of speed is done by computer not by human in Allison’s fully automatic transmission, so there are various types of database and know-how about the shift time. The 5th generation electronic control system equipped in the whole lines of Allison sets gear shift and accelerated condition restriction dynamically according to driving habits and driving environments such as cargo capacity, road and slope, judging the optimum shift time.