Car Export Unit Prices All Rise... Only Renault Falls Behind

Comparison of Export Unit Price per Vehicle from January to October Year-on-Year
Export Volume 2.27 Million Units... 20% Increase from Last Year
Hyundai Exceeds $25,000... Only Renault Shows Year-on-Year Decline
New Cars in Development to Be Sold Domestically and Abroad in Second Half of Next Year

Amid an increase in automobile exports by domestic automakers, only Renault Korea Motors saw its export unit price per vehicle drop by more than 10%. Renault Korea has lost face as both its export volume and unit price per vehicle declined. With no new car launches expected in the near future, a rebound seems unlikely.

Analyzing the monthly statistics from the Korea Automobile Mobility Industry Association on the 1st, South Korea's automobile exports totaled 2,274,496 units through October this year. This represents an increase of over 20% compared to the same period last year, and if this trend continues, it is expected to comfortably recover to pre-COVID-19 levels. About a decade ago, South Korea's annual automobile exports exceeded 3 million units, but after foreign automakers reduced their volumes, exports dropped to around 2.4 million units in 2019.

Stefan Deblaes, President of Renault Korea Motors [Photo by Renault Korea Motors]

More notable than the increase in export volume is the sharp rise in the export unit price per vehicle. Based on export volume and export value from January to October this year, the average export price per vehicle was $23,046. This is a 9.4% increase compared to the unit price of $21,059 during the same period last year. The rise in unit price is attributed to increased exports of relatively expensive eco-friendly vehicles such as sport utility vehicles (SUVs), hybrids, and electric vehicles. Until a few years ago, South Korea's automobile exports were mainly small to mid-sized sedans, but the size of vehicles sold overseas has gradually increased, and with recognized product quality, exports of high-priced vehicles have also grown.

The situation varies by manufacturer. Hyundai Motor Company, Kia, Korea GM, and KG Mobility all saw increases in their export unit prices per vehicle. Hyundai had the highest export unit price at $25,825 (for passenger cars), the only domestic automaker to exceed $25,000. This was thanks to increased sales of high-end brands like Genesis and eco-friendly vehicles such as Kona and Ioniq.

Kia ($23,048), Korea GM ($17,672), and KG Mobility ($22,305) all showed steady increases compared to the same period last year. KG Mobility, which mainly produces SUVs, surpassed $20,000 for the first time. Until a few years ago, KG Mobility (formerly SsangYong Motor) had a higher export unit price per vehicle than Hyundai, but due to internal and external turmoil, it had stalled. However, after welcoming a new major shareholder last year and launching new models, it is increasing overseas sales.

In contrast, Renault Korea's export unit price per vehicle fell to $17,526, the only one to decline. Compared to the same period last year ($19,958), this is a 12% decrease. Renault Korea is the only one among the five domestic automakers whose export volume decreased this year, and its unit price also plummeted. With domestic sales halved or more, and export performance worsening, the company is in a difficult position both internally and externally.

Renault Korea Motors Busan Plant Exterior View [Photo by Renault Korea Motors]

The difference is even more pronounced compared to five years ago. Comparing export unit prices between 2018 and this year, Hyundai and Kia rose sharply by 60.7% and 53.2%, respectively. Korea GM and KG Mobility also increased by 31.7% and 31.0%, respectively. During this period, Renault only increased by 2.3%, essentially remaining stagnant.

Since it is expected to take considerable time to mass-produce and sell the new cars currently under development, finding a breakthrough is not easy. A mid-sized hybrid SUV is planned to be unveiled around next summer, with sales targeted for the second half of the year. The electric vehicle volume commissioned by the second-largest shareholder, China's Geely Automobile, will only arrive in the second half of 2025.