Last Month's Car Exports Surpass $5 Billion... Highest in 7 Years and 7 Months

$5.14 Billion in Car Exports in July... 25.3% Increase YoY
All 5 Major Automakers Increase Export Volume... Hyundai Motor Up 9.6%
Eco-Friendly Car Exports Surpass 50,000 Units... Record Monthly High

August 1-10 Exports Increase by 23.2%... Trade Deficit of 7.7 Billion Dollars
(Busan=Yonhap News) Reporter Kang Deok-cheol = According to the Korea Customs Service on the 11th, the export amount (provisional customs clearance basis) from August 1 to 10 was 15.688 billion dollars, an increase of 23.2% compared to the same period last year. Imports amounted to 23.365 billion dollars, up 34.1% from a year earlier. As a result, the trade balance recorded a deficit of 7.677 billion dollars. The photo shows container handling operations taking place at Busan Port's Sinsundae and Gamman docks on the morning of the 11th. 2022.8.11
kangdcc@yna.co.kr
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[Asia Economy Sejong=Reporter Lee Jun-hyung] Last month, automobile export value surpassed 5 billion dollars, marking the highest level in 7 years and 7 months. Exports of eco-friendly vehicles such as electric cars also exceeded 50,000 units for the first time ever.

The Ministry of Trade, Industry and Energy announced on the 15th that last month's automobile export value reached 5.14 billion dollars, a 25.3% increase compared to the same month last year. This is the first time monthly automobile export value has exceeded 5 billion dollars. The export volume of automobiles was 223,633 units, a 23.1% increase over the past year. A ministry official stated, "Both export volume and value increased by double digits, surpassing pre-COVID-19 levels," adding, "The export value is the highest since December 2014, 7 years and 7 months ago."

The record-breaking export performance was due to increased demand not only in major overseas markets but also in emerging markets. Exports to major markets such as North America and the European Union (EU) increased to 2.436 billion dollars (35.7%) and 785 million dollars (4%), respectively, continuing the upward trend. Exports to emerging markets including the Middle East (4.8%), Latin America (14.1%), Oceania (28.8%), and Asia (84.4%) also showed growth.

The volume shipped last month was also affected by the delayed shipments caused by the large-scale strike of the Cargo Solidarity in June this year. In fact, all five domestic automakers, including Hyundai Motor Company (9.6%), saw an increase in export volume compared to the same month last year. Among mid-sized automakers, Kia (26.5%), Korea GM (36.8%), Ssangyong Motor (88%), and Renault Korea (104.4%) all showed double-digit growth in export volume last month.

Monthly sales and export trends of eco-friendly vehicles from January to July 2022.
Photo by Ministry of Trade, Industry and Energy

Exports of eco-friendly vehicles also showed strong performance. Last month, the export volume of eco-friendly vehicles such as electric and hybrid cars increased by 60.1% year-on-year to 54,222 units, surpassing 50,000 units for the first time. Specifically, hybrid vehicles sold 31,433 units (70.1%) and electric vehicles sold 20,493 units (73.7%).

The domestic market for eco-friendly vehicles is also steadily growing. Last month, domestic sales of electric vehicles reached 14,708 units, a 102.9% increase over the past year. During the same period, domestic sales of Korean electric vehicles rose from 6,806 to 13,112 units, a 92.7% increase. As of last month, the cumulative number of electric vehicles supplied reached 314,000 units. The cumulative supply of eco-friendly vehicles including hybrid and hydrogen cars reached 1.4 million units, accounting for 5.6% of the total registered vehicles.

Meanwhile, domestic automakers' production volume exceeded 300,000 units for five consecutive months. Last month, domestic automobile production reached 324,688 units, a 9.1% increase compared to the same month last year. In particular, production volumes of mid-sized automakers Korea GM (17.4%), Ssangyong Motor (34%), and Renault Korea (39.7%) all showed double-digit growth.

A ministry official explained, "While global supply chain instability continues, the shortage of (automobile) parts has somewhat eased," adding, "The main reasons for the production increase of the three mid-sized automakers appear to be the improvement in parts supply and the resumption of two-shift daytime work at Ssangyong Motor following the launch of the Torres model."