Car Exports Halved Due to COVID-19

Ministry of Industry Announces 'April Monthly Trends in the Automobile Industry'

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] Due to the impact of the novel coronavirus infection (COVID-19), domestic automobile production and exports decreased last month. In particular, exports were halved due to lockdowns (movement restrictions) at overseas factories.

According to the "April Monthly Automobile Industry Trends" announced by the Ministry of Trade, Industry and Energy on the 15th, automobile exports fell 44.3% year-on-year to 123,906 units, and export value decreased 36.3% to 2.39 billion dollars.

The ministry explained, "This is due to the sharp decline in global sales demand caused by the spread of COVID-19 and the implementation of lockdowns."

Automobile production recorded 289,515 units, down 22.2% compared to the same month last year.

Production declined due to ▲ 2 fewer working days ▲ adjustment of production volume for some models such as Tucson due to decreased overseas demand ▲ shutdowns at some Kia plants such as Sohari and Gwangju due to reduced global sales demand.

However, the export share of eco-friendly vehicles reached a record high of 17.9%.

Domestic sales increased thanks to reductions in individual consumption tax, the effect of new models, and strengthened promotions and marketing by the industry. Sales rose 8% year-on-year to 167,375 units.

Domestic cars sold 144,230 units, up 6.4% year-on-year, while imported cars increased 18.7% to 23,145 units.

Last month, automobile parts exports amounted to 1.02 billion dollars, down 49.6% due to the suspension of operations at major overseas finished car factories caused by the impact of COVID-19.

This content was produced with the assistance of AI translation services.