Automobile Exports Reach $23.6 Billion in First Half of Year... Highest in 7 Years

[Sejong=Asia Economy Reporter Kwon Haeyoung] Despite the shortage of automotive semiconductors, automobile export value in the first half of this year recorded the highest level in seven years. The export value of eco-friendly vehicles surpassed 5 billion dollars for the first time, driving the overall export growth.

According to the "Monthly Trends in the Automobile Industry for the First Half and June" announced by the Ministry of Trade, Industry and Energy on the 15th, automobile production in the first half reached 1,814,510 units, exports were 1,049,658 units, and domestic sales were 910,904 units. Compared to the same period last year, production increased by 11.5%, exports by 27.9%, while domestic sales decreased by 2.1%.

Production increased compared to the same period last year despite some factories being closed due to disruptions in the supply of automotive semiconductors, thanks to new car launches and strong export performance. In particular, this marked a double-digit increase for the first time in 11 years since the first half of 2010.

The number of exported vehicles grew in double digits for the first time since the first half of 2012. This was due to the increased market share in global local markets resulting from domestic companies' efforts to enhance product competitiveness despite difficulties in parts supply. Strong exports of new models such as the GV70 and Ioniq 5 EV, as well as the full-scale export of the XM3, also contributed to the overall export growth. The export value in the first half was recorded at 23.61 billion dollars, a 49.9% increase compared to the same period last year. This is the highest since 25.23 billion dollars in the first half of 2014 and exceeds the pre-COVID-19 level of 21.68 billion dollars in the first half of 2019 by 8.9%.

An official from the Ministry of Trade, Industry and Energy explained, "The effect was realized by upgrading the export item structure, such as shifting the main export items to sports utility vehicles (SUVs) and eco-friendly vehicles."

Domestic sales slightly decreased due to the base effect from last year’s domestic demand stimulation policy and production disruptions caused by parts supply difficulties. However, it achieved the second-highest record for the first half on a historical basis following last year. Domestic cars sold 749,988 units, 5.5% less than the same period last year, while imported car sales increased by 17.7% to 160,916 units.

Looking only at eco-friendly vehicles, domestic sales recorded 157,567 units, a 68.9% increase, and exports reached 172,921 units, a 37.1% increase. Both domestic sales and exports set the highest records for the half-year period. By vehicle type, hybrid cars increased by 63.3%, and electric vehicles by 13.9%. In particular, electric vehicles achieved their highest monthly sales by surpassing 10,000 units in June. Export value increased by 61.8% compared to the same period last year, reaching 5.12 billion dollars, surpassing 5 billion dollars for the first time.

In June alone, automobile production was 325,763 units, exports were 174,964 units, and domestic sales were 165,759 units. Compared to the same period last year, production and exports increased by 9.7% and 38.1%, respectively, while domestic sales decreased by 19.4%. Export value rose by 62.5% to 4.05 billion dollars.

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