Automotive Sector Deep Dive
The automotive industry is at the epicenter of paradigm shifts including electrification, autonomous driving, and Software-Defined Vehicles (SDV). Korean automakers are expanding global market share while strengthening premium strategies.
Key Trends
Hyundai Motor Group's Global Advance: Hyundai Motor and Kia are strengthening their position in the global EV market with the IONIQ/EV series based on the dedicated E-GMP platform. The Georgia factory operation is expected to bring IRA subsidy benefits with expanded local production capacity.
Software-Defined Vehicles (SDV): As vehicles evolve from simple transportation to 'smart devices on wheels,' automotive software and OTA updates have become key competitive advantages. Hyundai's ccOS strategy is noteworthy.
Tesla's Influence: Tesla is redefining the automotive industry's future with FSD technology and robotaxi vision, while triggering price competition that affects industry-wide profitability.
Investment Outlook
The automotive sector has a neutral short-term outlook due to electrification transition costs and intensifying price competition, but re-rating potential exists based on Korean automakers' brand value appreciation and SDV transition success.
Risk Factors
Risks include electrification transition cost burden, price competition with Chinese players, raw material price volatility, and demand decline from global economic slowdown.