July Car Exports Down 11.7%... Electric Vehicles Up 105.1%

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] Last month, South Korea's automobile exports decreased by double digits compared to the same period last year. In the first half of the year, exports fell below 1 million units for the first time in 11 years, although the decline narrowed somewhat last month. Electric vehicle exports continued their upward trend.

According to the July automobile industry trend data released by the Ministry of Trade, Industry and Energy on the 17th, domestic automobile exports last month totaled 181,362 units, down 11.7% from the previous year.

Source: Ministry of Trade, Industry and Energy

Looking at performance by region, the major market North America recorded $2.049 billion, an increase of 20.1%.

However, most regions struggled, including the European Union (EU) -6.3% ($693 million), Eastern Europe -20.1% ($231 million), Middle East -50.8% ($184 million), Latin America -71.8% ($49 million), Africa -49.2% ($44 million), Oceania -12.3% ($238 million), and Asia -3.5% ($170 million).

Last month, auto parts exports also remained down 27.7% year-on-year, continuing the decline from April (-49.6%), May (-66.7%), and June (-45.1%).

Specifically, North America -26% ($583 million), EU -37.2% ($240 million), Middle East -38.1% ($62 million), Latin America -63.3% ($39 million), Africa -32.6% ($13 million), Oceania -38.7% ($7 million), and Asia -27.1% ($345 million) all showed decreases.

Eastern Europe increased by 8.4% ($192 million).

An official from the Ministry of Trade, Industry and Energy explained, "Local automakers adjusted production to reduce inventory, and the spread of COVID-19 in emerging markets continued, leading to reduced export performance."

Source: Ministry of Trade, Industry and Energy

Exports of eco-friendly vehicles such as electric and hydrogen cars increased by 12.5% year-on-year to 27,468 units.

Electric vehicle performance stood out. Strong sales of key models such as Kona EV and Niro EV drove the growth. Exports increased for 36 consecutive months compared to the previous year.

Last month, electric vehicle exports reached 12,511 units, a 105.1% increase from 6,100 units in the same month last year. Compared to 2,489 units in 2018, this is more than a fivefold increase. By model, Kona EV increased by 99.8%, Soul EV by 61.1%, and Niro EV by 304.4%.

As part of the Korean New Deal policy announced last month, the government is promoting the supply of 1.13 million electric vehicles and 200,000 hydrogen vehicles. It plans to launch more than 23 types of electric and hydrogen vehicles by 2025.

Source: Ministry of Trade, Industry and Energy

Last month, production decreased by 3.8% year-on-year to 345,711 units. This was a better performance compared to June's -19.8%. April saw -22.2%, May -36.9%, and June -10.7%, but the decline rate was reduced to single digits.

Domestic sales increased by 8.9% to 164,539 units. Strong sales of new and popular models continued, marking five consecutive months of growth. The domestic sales growth rates were 10.1% in March, 8% in April, 9.7% in May, and 42% in June.

Domestic sales of Korean-made cars increased by 10.5% year-on-year to 143,038 units. An official from the Ministry of Trade, Industry and Energy said, "The launch of new models and special discounts and installment benefits by manufacturers influenced this."

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