Car Exports Negative for 10 Consecutive Months... Halved for 2 Months Due to Corona

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

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chae-seok] Due to the impact of the novel coronavirus infection (COVID-19), domestic automobile production and exports decreased last month. In particular, exports have been negative for 10 consecutive months, and due to the impact of COVID-19, exports were "halved" during April and May.

According to the "May Monthly Automobile Industry Trends" announced by the Ministry of Trade, Industry and Energy on the 11th, automobile exports amounted to 95,400 units, down 57.6% compared to the same month last year.

Exports increased by 11.6% year-on-year in July last year but have continuously declined since then. The monthly changes were -3.4% in August, -4.8% in September, -10.2% in October, -8.6% in November, -6.7% in December, -28.1% in January this year, -1.6% in February, -10.3% in March, -44.3% in April, and -57.6% in May.

The Ministry explained the poor performance last month by stating, "Although automobile dealerships in major countries sequentially resumed operations, the inventory volume was affected by the sharp decline in local demand in April."

However, exports of eco-friendly vehicles increased by 15.3% to 21,426 units. Electric vehicles (EVs) rose by 151.2%, and plug-in hybrids increased by 16%.

Automobile parts exports were also severely affected. They amounted to only $650 million, down 66.7% compared to the same period last year. The prolonged impact of COVID-19 delayed normalization as major overseas automobile factories extended shutdowns.

Production decreased by 36.9% year-on-year to 231,099 units. The Ministry cited reasons for the decline including production adjustments due to reduced overseas sales demand, three fewer working days, and parts inventory shortages at some companies.

Domestic sales increased due to the expanded implementation of individual consumption tax cuts (March to June), new car effects, and strengthened promotions and marketing by the industry. Sales rose 9.7% year-on-year to 168,778 units.

Domestic cars sold 144,704 units, up 9.4% year-on-year, while imported cars sold 24,074 units, up 11.5%.

Last month, automobile parts exports amounted to only $1.02 billion, down 49.6%, due to shutdowns at major overseas automobile factories caused by the impact of COVID-19.

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