Domestic Car Production Hits 16-Year Low Last Year Due to COVID-19 Impact

Domestic Demand Increased but Export Decline Due to COVID-19 Impact

[Asia Economy Reporter Changhwan Lee] Last year, South Korea's automobile production volume dropped to its lowest level in 16 years. Exports also recorded the lowest figure in 17 years since 2003. This is due to the impact of the novel coronavirus disease (COVID-19).

According to the Korea Automobile Manufacturers Association (KAMA) on the 24th, domestic automobile production last year was 3,506,848 units, down 11.2% from the previous year. This is the lowest number since 2004 (3,469,464 units).

The sharp decline in exports was due to the near paralysis of overseas automobile markets caused by COVID-19. Last year's exports were 1,886,831 units, down 21.4% from the previous year, marking the lowest since 2003 (1,814,938 units).

By company, the three foreign-affiliated automakers?Korea GM, Renault Samsung Motors, and Ssangyong Motor?all saw significant decreases in production. Korea GM produced 354,800 units, down 13.4% from the previous year, marking the lowest in 16 years since 2004.

Renault Samsung Motors produced 114,630 units, the lowest in 17 years since 2003, decreasing 30.5% compared to the previous year. Ssangyong Motor produced 106,836 units last year, down 19.7% from the previous year.

Even Hyundai Motor, which fared relatively better, produced 1,618,411 units last year, down 9.4%, and Kia produced 1,307,254 units, down 9.9%. Domestic annual automobile production has remained around the 3 million unit level for two consecutive years after falling below 4 million units for the first time in 10 years in 2019.

On the other hand, this year, the domestic sales performance of the five domestic automakers reached an all-time high due to new car launches and increased demand. Last year's domestic sales were 1,611,360 units, up 4.7% from the previous year, marking the highest ever.