South Korea seizes Taiwan's market share in printing machine tools
Led Uv Light Bulb,Vuv Light,Asp Uv Lamp,Mini Split Uv Light Guangdong Kingrate Optoelectronic Technology Co., Ltd. , https://www.kingrateuv.com
July 26 01:18:49, 2025
Abstract The depreciation of the Korean won, combined with the tariff reductions under the CEPA agreement that allow Korean machine tools to be printed and exempted from duties in India, has significantly weakened the competitiveness of Taiwanese machine tools in the Indian market. As a result, the rapid increase in South Korean machine tool exports to India has put considerable pressure on Taiwan's export performance. According to the Korea Machine Tool Manufacturers Association (KOMMA), South Korea's machine tool exports reached $2.55 billion in 2012, marking a year-on-year growth of 10.6%. The country's main export markets include Asia, Europe, and North America, with China, the U.S., and India being its top three destinations. In contrast, Taiwan’s machine tool exports for the same year totaled $4.2 billion, with China, the U.S., and Thailand as its primary markets. India dropped from sixth to seventh place in Taiwan's export list compared to the previous year.
The surge in South Korean machine tool exports to India is largely driven by the CEPA tariff exemption and the growing investment of the Korean automotive industry in the Indian market. This has led to a significant increase in the export of key products such as machining centers, lathes, and other precision machine tools. Indian automobile production lines now heavily rely on Korean-made equipment.
In 2012, India imported a total of $2.32 billion worth of machine tools. Among these, South Korea accounted for $260 million, representing an increase of over 70% compared to the previous year. Meanwhile, Taiwan's exports to India were only $130 million, showing a slight decline of 3.6%. This shift in market share saw South Korea's presence in the Indian import market rise from 6.8% to 11.3%, while Taiwan's fell from 6.3% to 5.7%. South Korea moved up from sixth to fifth place, while Taiwan dropped from fifth to sixth.
Both South Korea and Taiwan primarily export machining centers, CNC lathes, and general-purpose machine tools to India. Approximately 80% of South Korean machine tool exports to India fall into these categories, while around 70% of Taiwan’s exports are also concentrated in the same product types.
Taiwan still leads in the export of machining centers to India, with a total value of $32.91 million. This is due to the continued advantage of Taiwanese products in this segment, as Indian manufacturers still prioritize them when making purchases. However, in the case of CNC lathes, South Korea holds a clear edge. This is mainly because Korean CNC lathes are widely used in the automotive sector, where Taiwan lacks experience. As a result, Indian auto companies tend to favor Korean products for their procurement needs.
When it comes to forming machine tools, South Korea's exports to India reached $130 million, far outpacing those of Taiwan. This is attributed to the fact that India’s automotive industry relies heavily on sheet metal parts and components produced along the entire production line. With the Korean automotive industry investing heavily in India, it is expected that Korean automakers will prefer Korean-made equipment. As a result, Taiwanese machine tools are seen as less competitive in comparison.