South Korea seizes Taiwan's market share in printing machine tools
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July 26 01:20:41, 2025
The **abstract** highlights the significant impact of the South Korean won's depreciation and the preferential tariff treatment under the CEPA agreement on the competitiveness of Taiwanese machine tools in India. As a result, South Korean machine tool exports to India have surged, putting pressure on Taiwan’s market share. According to the Korea Machine Tool Manufacturers Association (KOMMA), South Korea's machine tool exports reached $2.55 billion in 2012, marking a 10.6% year-on-year increase. The country primarily targets Asian, European, and North American markets, with China, the U.S., and India being its top three destinations. In contrast, Taiwan's machine tool exports totaled $4.2 billion, with China, the U.S., and Thailand as its main markets. India dropped from sixth to seventh place in 2012.
Thanks to the CEPA tariff exemption and increased investment by the South Korean automotive industry in India, South Korean machine tool exports to India have grown significantly. Key products include machining centers, lathes, and other industrial equipment. Indian auto production lines increasingly rely on South Korean machine tools.
In 2012, India imported $2.32 billion worth of machine tools, with South Korea accounting for $260 million—an over 70% increase. Meanwhile, Taiwan’s exports fell to $130 million, a 3.6% decline. South Korea's market share in India rose from 6.8% to 11.3%, while Taiwan’s dropped from 6.3% to 5.7%. South Korea moved up to fifth place, while Taiwan slipped to sixth.
Both South Korea and Taiwan export similar machine tool products to India, including machining centers, CNC lathes, and general-purpose machine tools. Approximately 80% of South Korean exports fall into these categories, compared to 70% for Taiwan. Despite this, Taiwan still leads in machining center exports to India, totaling $32.91 million. This is due to the continued preference for Taiwanese products in certain sectors. However, in the case of CNC lathes, South Korea has gained a clear advantage, largely because these machines are widely used in the Indian automotive sector—where Korean brands have a stronger presence.
South Korea also outperforms Taiwan in the forming machine tool segment, with exports reaching $130 million. This is attributed to the fact that India’s automotive supply chain heavily relies on Korean-made sheet metal components. With South Korea’s growing investments in the Indian auto industry, local manufacturers are more likely to favor Korean machinery. As a result, Taiwanese machine tools remain at a disadvantage in several key areas of the Indian market.