October Car Exports Decline Again... North America and EU Increase↑

Domestic Sales of Eco-Friendly Cars Up for 9 Months... Share of Total Increased from 7.6% to 13.2%

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] Exports in the automobile industry have turned to a decline again. Eco-friendly vehicles showed growth in the domestic market for nine consecutive months.

According to the 'October Monthly Automobile Industry Trends' announced by the Ministry of Trade, Industry and Energy on the 16th, last month's automobile exports were recorded at 200,066 units, down 3.2% compared to October of the previous year.

Although exports turned positive for the first time since the COVID-19 pandemic in September, they returned to a declining trend. The decrease was influenced by two fewer business days.

Automobile exports began to slump from April (-44.6%) due to the global demand contraction caused by COVID-19, continuing the downward trend in May (-57.5%), June (-40.1%), July (-9.2%), and August (-19.5%).

However, the average daily exports and export value showed an increasing trend. An average of 10,561 vehicles were sold abroad daily, a 7% increase compared to the same month last year. Export value also rose by 5.8% year-on-year to 4.02 billion USD.

Exports to major markets also increased. Last month, exports to North America and the European Union (EU) increased by 12.4% (2.011 billion USD) and 17.7% (757 million USD) respectively compared to October of the previous year.

An official from the Ministry of Trade, Industry and Energy explained, "The export value increased for two consecutive months due to the rising share of high value-added vehicles such as Sports Utility Vehicles (SUVs) and eco-friendly cars."

The share of SUVs in total exports was 68.5%, up 2.4 percentage points (p) from October last year, and electric vehicles accounted for 15%, an increase of 3.8 percentage points.

Exports of automobile parts remained at 1.81 billion USD, down 9.3% compared to the same month last year.

From the 1st to the 8th of last month was the Chinese National Day holiday, and COVID-19 spread again in Europe including Germany, France, and the United Kingdom. The reduction of two working days also had a significant impact.

Domestic sales in October were 160,151 units, up 1.7% from a year earlier. The increase continued thanks to the effects of new models such as Carnival, Avante, Sorento, and Genesis.

For eco-friendly vehicles, domestic sales were 21,150 units, up 77.5% year-on-year, and exports were 30,110 units, up 30.1%.

Domestic sales of eco-friendly vehicles showed growth for nine consecutive months. Their share of total domestic sales in October was 13.2%, expanding by 5.6 percentage points from 7.6% in October last year.

Electric vehicles contributed to the increase in eco-friendly vehicle performance with domestic sales and exports expanding by 51.6% and 51.7%, respectively.

Automobile production was recorded at 336,279 units, down 4.3%. This was affected by labor disputes at Korea GM and two fewer working days due to the Chuseok holiday.

An official from the Ministry said, "Production at Korea GM decreased by about 7,000 units compared to the same month last year, accounting for 45.7% of the total decrease in finished vehicle production in October," adding, "This was influenced by the non-implementation of overtime and extra shifts as well as partial strikes."

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