South Korea's Electric Cars Rank 4th Globally After Germany, USA, and China

First Half US Market Share: Hyundai Motor and Kia Rank 2nd After Tesla
Global Sales Volume Ranks 5th

Hyundai's electric vehicle Ioniq 6 concept car, 'Prophecy,' is exhibited at the 'IAA Mobility 2021' event held in Munich, Germany, on September 7 last year (local time). (Photo by EPA Yonhap News)

[Asia Economy Reporter Moon Chaeseok] South Korea's electric vehicle (EV) export volume ranks fourth in the world, following Germany, the United States, and China. Its imports rank around 14th globally. Experts point out the need for special caution due to the domestic market structure focused on internal consumption and external and internal challenges such as the U.S. Inflation Reduction Act (IRA).

According to the report "Post-COVID Major Countries' Electric Vehicle Market Trends" released on the 8th by the Korea International Trade Association's International Trade and Commerce Research Institute, South Korea's EV export value last year was $7 billion, ranking fourth worldwide after Germany ($28.8 billion), the U.S. ($10.1 billion), and China ($10 billion).

South Korea's EV export value increased by 112.2% compared to 2019, before the COVID-19 pandemic. The share of EVs in total automobile exports also nearly doubled to 15.8% last year from 8.1% in 2019.

South Korea's main EV export regions are the United States and Europe, where it recorded the second-highest market share in the first half of this year, following Tesla, for the first time in the U.S. market.

Among the top 10 countries by EV export value, six European countries are included alongside Germany: Spain (5th), Belgium (6th), Slovakia (7th), Czech Republic (9th), and Sweden (10th). Japan ranked 8th with $4.6 billion.

Germany led EV imports with $17.7 billion, dominating first place as it did in exports. It was followed by the U.S. ($9.1 billion), the United Kingdom ($8.9 billion), and France ($7.3 billion).

Seven European countries were included in the top 10 importers, along with the U.S. (2nd), Canada (9th), and China (10th). South Korea ranked 14th with $2.1 billion.

China's EV export value was $1 billion in 2019, ranking 11th, but it grew tenfold last year to rise to 3rd place. During the same period, its import value decreased from $3.5 billion to $2.9 billion.

The Korea International Trade Association analyzed this as "due to the growth of Chinese domestic brands such as BYD and the full-scale production of global brands in China, including Tesla's Shanghai Gigafactory."

In last year's global EV sales ranking by automaker brand, Hyundai Motor Company and Kia ranked 5th.

Hyundai and Kia's EV sales reached 340,000 units, following Tesla (1.05 million units), Germany's Volkswagen (710,000 units), China's BYD (600,000 units), and U.S. General Motors (GM) (520,000 units).

Last year's global EV sales hit a record high of 6.6 million units, a 226.3% increase compared to 2019. During the same period, the global EV trade volume grew by more than 150%, from $74.2 billion to $188.7 billion. This contrasts with the total global automobile sales of 84.55 million units last year, which decreased by 9.7% compared to 2019.

Kim Kkotbyeol, senior researcher at the Korea International Trade Association, diagnosed, "China, Germany, and the U.S. have strengths in all sectors including domestic consumption, exports, and production, but South Korea, as an export-focused country with a small domestic market, faces difficulties in enhancing competitiveness compared to rival countries."

She added, "Recently, the U.S. passed the Inflation Reduction Act (IRA), and various countries maintain differentiated subsidy policies to promote EVs, so close cooperation between the public and private sectors is necessary to sustain the export competitiveness of our companies."

The report cited data from the International Energy Agency (IEA) under the Organisation for Economic Co-operation and Development (OECD), the Korea Automobile Manufacturers Association, and the Korea International Trade Association.