Brexit presents opportunity for Hyundai, Kia

[THE INVESTOR] Korean carmakers could gain an edge over Japanese carmakers in the European market following UK’s leaving the European Union.

From 2018, Korean carmakers’ vehicles exported to the UK will be subjected to tariffs, giving Japanese vehicles produced in the UK an edge in pricing. 

On the much larger European market, however, Korean firms’ vehicles will gain an edge over Japanese vehicles. Unlike Japanese carmakers that have facilities in the UK, Hyundai Motor and Kia Motors operate production lines in the Czech Republic and Slovakia.

During the first five months of the year, Hyundai and Kia sold 402,000 units in Europe while sales in UK came in at 78,000 units.

By Choi He-suk (cheesuk@heraldcorp.com)