Car Exports Reached $4.4 Billion Last Month, Up 6.1% YoY
Highest Since COVID-19 Outbreak...Eco-Friendly Cars Account for 24.4%
Domestic Demand for Eco-Friendly Cars Also Soars...Tesla Sales Surge
Semiconductor Shortage and China Lockdowns Pose Challenges...Domestic Production Shrinks
[Asia Economy Sejong=Reporter Lee Jun-hyung] Last month, automobile export value reached $4.4 billion, marking a 6.1% increase compared to the same period last year. This surge is attributed to a significant rise in exports of eco-friendly vehicles such as electric cars, driven by the global carbon neutrality trend. However, production volume declined due to semiconductor supply shortages and disruptions in parts supply caused by China’s large-scale lockdown policies.
According to the Ministry of Trade, Industry and Energy on the 16th, last month’s automobile export value was tentatively estimated at $4.4 billion, a 10.7% increase from the previous month ($4.15 billion). This is the highest figure since the spread of COVID-19 in Korea in 2020. The number of exported vehicles was 196,780 units, up 12.4% from the same period last year. This export volume ranks as the second highest since the COVID-19 outbreak, following March 2020 (206,677 units).
The increase in automobile exports is mainly due to eco-friendly vehicles. As global demand for eco-friendly cars rises in line with the carbon neutrality trend, exports of domestic electric and hybrid vehicles have also increased. In fact, the proportion of eco-friendly vehicles among automobiles exported by domestic automakers last month was 24.4%, up 4.9 percentage points from 19.5% in the same period last year. From January to last month, the cumulative number of eco-friendly vehicles exported was 170,484 units, a 40.6% increase compared to 121,243 units during the same period last year. Notably, hybrid vehicle export value has increased for 16 consecutive months, surpassing $600 million for the first time in history.
Domestic sales of eco-friendly vehicles have also continued to rise for three consecutive months. Last month, 10,942 domestically produced electric vehicles were sold in Korea, a 193.5% increase from 3,728 units in the same period last year. During the same period, domestic sales of domestically produced hybrid vehicles rose 55.2%, from 10,797 units to 16,760 units. Sales of imported electric vehicles such as Tesla also surged by 248.4%, from 438 units to 1,526 units.
However, automakers have faced production disruptions. The prolonged shortage of automotive semiconductors, coupled with difficulties in parts supply due to China’s ‘Zero COVID’ policy and lockdowns in major cities, have caused production challenges. For example, Kia produced 126,000 vehicles last month, a 17.3% decrease compared to the same period last year. Korea GM also saw a 14% drop in production due to insufficient parts supply caused by Shanghai’s lockdown measures.
Imported car manufacturers were not spared from the semiconductor shortage. Imported car sales in Korea last month, including brands like Mercedes-Benz and BMW, totaled 23,200 units, down 10.6% from the same period last year. Imported car sales in Korea have been declining for eight consecutive months since September last year.
Meanwhile, domestic automobile sales last month were 143,167 units, down 11.1% over the past year. This decline is attributed to delivery backlogs and other factors. Specifically, Hyundai’s domestic sales last month were 59,415 units, a 15.4% decrease compared to the same period last year.
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