APPLE TO PRODUCE ELECTRIC VEHICLES

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The U.S tech giant Apple is said to start producing electric vehicles four years from now. South Korea’s automotive sector is closely watching how Apple cars could impact Korean automakers.

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This electric vehicle was released this year by the consumer electronics maker Sony. The company developed its own electric car to promote its sensors, which act as eyes in autonomous vehicles.

[Soundbite] TATSUYA KOEDA(SONY(JAN. 2020)) : "What sensors is this vehicle equipped with?) There is a tablet inside and 33 sensors all over the car."

The electronic vehicle market is relatively easy to enter as electric cars don’t need complicated components such as engines or transmission gear boxes. This is the reason why there has been endless rumors about Apple launching its own cars. A recent media report claimed that the U.S. tech giant plans to release a self-driving electric car in 2024 and that it has even begun research into next-generation batteries. The market reacted to the news right away. Even images of what Apple cars will likely look like have surfaced online. And shortly after the news, Tesla’s shares plunged.

[Soundbite] CHOI YOUNG-SEOK(PROF., SUN MOON UNIVERSITY) : "Apple has already attracted a lot of manpower from Tesla and other rival companies. Because of its high brand loyalty, even a toy car would likely fly off the shelves."

Apple has neither denied nor confirmed the news. U.S. President-elect Joe Biden has pledged to revive the American manufacturing sector. If Apple does in fact release its own set of vehicles, Korean automakers will face a more fierce competition in the global market.

[Soundbite] LIM EUN-YOUNG(SAMSUNG SECURITIES) : "It may be tougher for automakers, but the market will expand a great deal, presenting new opportunities to auto component makers."

With Google and Amazon also pouring investment into research into autonomous cars, competition in the global automotive market is more than likely to intensify further.