The history of special vehicles in Korea started in the 1960s with freezer vehicles.
Afterward, the scale of the Korean special vehicles market grew to USD 200 billion by early 2000 with the formation of a crossed market with the crane market. Becau...
The history of special vehicles in Korea started in the 1960s with freezer vehicles.
Afterward, the scale of the Korean special vehicles market grew to USD 200 billion by early 2000 with the formation of a crossed market with the crane market. Because of the investment for market expansion and industrial diversification, new types of businesses appeared in all social sectors, client vehicles were upgraded, and imported vehicles increased. As a result, special vehicles of various forms (for transportation, environment, and trucks) necessary for more convenient and efficient working at construction sites as well as for car towing and emergency rescue were demanded. In particular, although the fields are different, the coming into effect of the Korea-Europe FTA improved the price competitiveness of Korean vehicles in Europe. Furthermore, the continued upgrading of the quality and brand value of Korean vehicles is expected to increase the demand for special Korean vehicles overseas. Hence, although the competition between companies specializing in vehicles, including large companies, is relatively fierce, special vehicles of diverse forms are being developed for each specific purpose, such as new working environments and jobs that have reached maturity.
However, because of economic downturn and excessive supply of special vehicles, the market has reached saturation. At last, local governments have limited the registration of special vehicle that demand is not increasing, the debit and credit level is being maintained, and production of only some selected special vehicles is increasing.
In the case of Jeollabuk-do province, it has two companies producing end-cars, such as Hyundai Motor and Tata Daewoo, which produce 93% of all commercial medium to large vehicles of Korea. It is the center of the commercial vehicle industry. This is where 30% of crane businesses and 60% of high ladder businesses, among special vehicles, are located. As such, it is equipped with competitiveness as the base of the commercial vehicle industry with a well-developed special vehicle industry. It is the mecca of the special vehicle industry that grew based on commercial vehicles. It is a region with a high growth potential, and its dominance in the domestic demand-driven market is close to 80%. Although the industrial growth rate of the business is -0.85%, and its average operating profit rate of 2.97% with stagnating industrial growth, reduced sales, and low total market profitability, competition between companies specializing in each field and end-cars is relatively fierce. Growth is stagnating. However, the demand for special vehicles that emphasizing working convenience because of further social sophistication is expected to increase. In particular, some Korean companies producing special vehicles are technologically exchanging with foreign companies that products and special vehicles of various forms are expected to appear.
In this regard, although the market for special vehicle consumption has not clearly grown so far, it is steadily maintaining the status quo. Also, more features, including safety-related ones, are being added for the development of more intelligent equipment and more areas for their use. The task of having to share the market by providing high-quality products of high specifications at low prices by reducing the production cost is impeding the growth of related companies. Nonetheless, even companies leading the Korean and overseas markets are largely investing in R&D and working hard to develop special vehicles that are safe and reliable.
Ideas for new technology and businesses always carry risks. Customers will shy away from products without development and changes, and the products will inevitably fall behind. Companies will thus be able to survive and continue growing by drawing up strategies, predicting the outcome, and enhancing personal relations with partner companies and customers to collect different data, analyze causes, improve, and supplement products.