Car Exports Down 40.6%... Eco-Friendly Car Imports Increase, Japanese Cars Down 66%

KCS Announces 'Q2 Passenger Car Trade Status'
Exports to Major Countries like US, Canada, Germany Decline
Eco-friendly Car Exports Up 33.5%, Centered on Europe
Passenger Car Imports $2.9 Billion, Up 17.7%
"New Model Launches and EV Subsidies Are Causes"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] Due to the impact of the novel coronavirus infection (COVID-19), passenger car export value in the second quarter of this year decreased by 40.6% compared to the same period last year. The number of exported vehicles sharply dropped to 350,000 units, nearly halving (-47.4%) compared to last year. On the other hand, passenger car import value increased by 17.7%, driven mainly by eco-friendly vehicles.

According to the '2020 Passenger Car Trade Status' announced by the Korea Customs Service on the 31st, the export value of South Korean passenger cars from April to June was $6.2 billion, down 40.6% from the same period last year. The number of exported vehicles recorded 350,000 units, a 47.4% decrease. This sharp decline in car exports was due to reduced demand caused by the COVID-19 pandemic and border closure measures.

By export country, the United States (-31.3%), Canada (-56.1%), Germany (-29.4%), France (-11.9%), and Australia (-66.4%) saw decreases compared to last year. Meanwhile, the United Kingdom (11.0%), the Netherlands (46.1%), and Israel (45.2%) experienced increases.

Exports of eco-friendly passenger cars such as electric and hydrogen vehicles amounted to $1.76 billion, a 33.5% increase compared to the same period last year. The export share also rose to 28.2%, up from 16.7% in the previous quarter, leading the overall passenger car exports.

Eco-friendly vehicle exports increased mainly to European countries including the United Kingdom (273.2%), Germany (65.9%), France (69.0%), the Netherlands (69.4%), Sweden (13.8%), and Spain (14.6%).

During the same period, passenger car import value rose 17.7% year-on-year to $2.9 billion, and the number of imported vehicles increased by 2.2% to 80,000 units.

South Korea's major passenger car import countries (by value) are Germany, the United States, Slovakia, the United Kingdom, and Japan. Imports increased from Germany (43.9%), the United States (5.2%), Slovakia (922.4%), and the United Kingdom (62.0%), but decreased from Japan (-65.6%), Sweden (-15.8%), Italy (-14.2%), and South Africa (-68.6%).

The main factors behind the import increase were new car launches and subsidies for electric vehicles. Imports of large gasoline vehicles rose 30.3%, eco-friendly vehicles 47.2%, and mid-sized diesel vehicles 8.0% compared to the same period last year.

Amid the ongoing Japan 'boycott' trend, imports of Japanese passenger cars continued to sharply decline by 65.6%, following a 44.2% drop in the previous quarter across all vehicle types.

A Korea Customs Service official stated, "While imports of Japanese passenger cars recorded a significant decrease, imports of eco-friendly vehicles centered on Germany and the United States are showing a strong upward trend."

The average export price of passenger cars was $17,750, and the average import price was $36,704, increasing by 13.0% and 15.2% respectively compared to the same period last year.

Export prices for eco-friendly vehicles rose for the tenth consecutive quarter, with the unit price reaching $25,568 in the second quarter of this year, up 10.6%. The unit price of large gasoline vehicles increased by 11.3% to $22,697, contributing to the overall rise in export prices. On the import side, increases in unit prices of large gasoline vehicles (39.7%) and eco-friendly vehicles (32.8%) led to the rise in the average import price of passenger cars.

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