Due to Semiconductor Shortage... Domestic Automobile Production Hits 13-Year Low

[Asia Economy Reporter Changhwan Lee] Due to the shortage of automotive semiconductors, domestic automobile production in the third quarter of this year decreased to the lowest level since the global financial crisis.

According to the Korea Automobile Manufacturers Association (KAMA) on the 17th, the total number of vehicles produced by domestic automakers in the third quarter (July to September) of this year was 761,975 units. This is the lowest level in 13 years since 2008 (760,121 units). It decreased by 20.9% compared to the third quarter of last year.

Domestic automakers had relatively sustained production with increased output in the first and second quarters compared to last year. However, due to the spread of COVID-19 in Southeast Asia in the second half of the year, the semiconductor shortage worsened, resulting in automobile production falling short of the 800,000-unit mark.

The industry initially expected the semiconductor supply situation to improve around September to October, but COVID-19 spread in Southeast Asian countries such as Malaysia, where semiconductor manufacturers like Germany's Infineon and Switzerland's STMicroelectronics have production bases, causing factory shutdowns and difficulties.

Hyundai Motor produced a total of 350,209 units in the third quarter of this year, down 15.8% from 415,992 units in the same period last year. Kia produced a total of 321,734 units in the third quarter, a 6.5% decrease from 344,212 units last year.

Korea GM produced only 45,939 units in the third quarter, less than half of 102,747 units in the same period last year. SsangYong Motor produced 20,499 units, down 21.7% from 26,164 units last year.

On the other hand, Renault Samsung Motors, which was less affected by the semiconductor supply shortage, produced 33,760 units, a 7.0% increase compared to 31,537 units in the third quarter of last year.