Due to the car semiconductor shortage... September sees a 'triple decline' in automobile production, domestic sales, and exports

[Sejong=Asia Economy Reporter Kwon Haeyoung] Last month, automobile production, domestic sales, and exports plummeted by 20-30% due to disruptions in the supply of vehicle semiconductors and a decrease in operating days caused by the Chuseok holiday. On the other hand, eco-friendly car exports recorded an all-time high of 35,000 units, an increase of more than 30% compared to the same period last year.

According to the 'September Automobile Industry Trends' announced by the Ministry of Trade, Industry and Energy on the 15th, automobile production last month decreased by 33% compared to the same period last year. Domestic sales and exports fell by 29.7% and 20.7%, respectively.

Automobile production recorded 229,423 units, down 33.1% from the same period last year, due to partial factory shutdowns caused by disruptions in the supply of vehicle semiconductors and a reduction in operating days during the Chuseok holiday. Hyundai Motor Company halted operations at Ulsan Plant 4 Line 1 (September 13-14), Line 2 (September 13-17), and Asan Plant (September 9-10, 15-17). Kia operated shutdowns on September 16-17 at Gwangmyeong Plant, and GM Daewoo operated shutdowns and production cuts at Bupyeong Plants 1 and 2 and Changwon Plant throughout the first to fourth weeks of September. The spread of the Delta variant intensified supply bottlenecks of vehicle semiconductors in Southeast Asia, including Malaysia, and the full-week shutdown during the Chuseok holiday further reduced operating days, resulting in generally poor production performance.

Domestic sales recorded 113,932 units, down 29.7%, due to a decrease in business days during the Chuseok holiday and worsening shipment backlogs caused by shortages in vehicle semiconductor supply.

Exports recorded 151,689 units, down 20.7%, affected by disruptions in vehicle semiconductor supply and a reduction of four operating days, despite an increase in global market share of domestic brands and a 31.3% expansion in eco-friendly car exports. Meanwhile, eco-friendly car exports reached an all-time high of 35,000 units, up 31.3% compared to the same period last year. Hybrid vehicles sold 16,932 units (up 34.6%), plug-in hybrids 3,987 units (up 163.9%), and electric vehicles 13,889 units (up 12.4%). The share of eco-friendly cars in total automobile exports also reached a monthly record high of 23.8%.

Last month, automobile export value recorded $3.56 billion, down 6.1%. Due to the increase in export unit prices from high value-added export items (internal combustion engines → eco-friendly cars), the decline in export value was relatively smaller compared to the decrease in sales volume.

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