"Driving Hybrid, Pushing Electric Cars" South Korea's Eco-Friendly Vehicle Export Share Surpasses 30%

Trade Association Auto Export Analysis
Eco-friendly Vehicle Exports Reach $6.2 Billion
Account for 30.4% of Total Vehicle Exports

Hyundai Motor Company Ulsan Plant Export Shipping Wharf Adjacent Yard

[Asia Economy Reporter Choi Dae-yeol] The proportion of eco-friendly vehicles in South Korea's automobile exports has exceeded 30% for the first time in terms of value. This is attributed to the spread of decarbonization trends mainly in developed countries and the increased demand for eco-friendly vehicles, which emit less carbon or have lower maintenance costs amid high oil prices.

According to an analysis of statistics from the Korea International Trade Association on the 11th, the total automobile export value from January to May this year was $20.415 billion. Among this, the export value of eco-friendly vehicles (electric vehicles + hybrids) reached $6.198 billion, accounting for 30.4%. The share of eco-friendly vehicles in total automobile exports steadily increased from 13.9% in 2019 and 25.1% last year, surpassing 30% for the first time this year.

By country, the United States was the largest importer with exports exceeding $2.3 billion. Since the Free Trade Agreement (FTA) was signed, the U.S. has traditionally been a major trading partner for Korean automobiles, and recently, with the surge in electric vehicle demand, it has imported many Korean eco-friendly vehicles. Hyundai and Kia's market share of electric vehicles in the U.S. ranks second only to Tesla, the world's largest electric vehicle manufacturer. Additionally, exports of Korean eco-friendly vehicles are increasing mainly in countries where electric vehicle adoption is rapidly growing, such as the United Kingdom, France, Canada, and Germany.

Renault Korea XM3 boarding the export ship

Export volumes are also on the rise. According to data from the Korea Automobile Manufacturers Association, eco-friendly vehicles accounted for 24% of total automobile exports from January to May this year, an increase of 6.4 percentage points compared to the same period last year. This is also the first time the volume share has exceeded 20%.

Among electric vehicles, Hyundai's Ioniq 5 was the most exported with 25,381 units, followed by Kia's EV6 with 25,052 units. Both models are pure electric vehicles built on dedicated platforms. Among hybrids, Renault Korea's XM3 was the top exporter with 26,597 units sold overseas. Hyundai Kona (14,422 units) and Kia Niro (13,078 units) also had significant numbers shipped abroad. The Niro, developed as a dedicated eco-friendly vehicle model, has sold nearly 45,000 units overseas when including all previous generations (electric, hybrid, and plug-in hybrid). The hydrogen fuel cell vehicle Nexo was exported in a quantity of 119 units.

Export vehicles are waiting to be loaded at Pyeongtaek Port, Gyeonggi. Photo by Moon Honam munonam@

Because eco-friendly vehicles are more expensive than conventional vehicles, they have also played a significant role in raising the average export price. Combining data from the Trade Association and the Automobile Manufacturers Association, the average export price of eco-friendly vehicles from January to May this year was $28,865, about 4% higher than last year. This is nearly 40% higher than the average export price of internal combustion engine vehicles ($20,763).

With Korean eco-friendly vehicles, especially those from Hyundai and Kia, receiving favorable reviews overseas, the export growth trend is expected to continue for the time being. In the U.S., sales of Hyundai and Kia eco-friendly vehicles in the first half of this year reached 90,691 units, an 82% increase compared to the same period last year. Notably, new models such as Hyundai's first dedicated electric sedan Ioniq 6 and Genesis GV60 are scheduled for release.