November Automobile Production, Export, and Sales All Show Triple Decline

Car Production Down 6.6% Year-on-Year... Exports and Domestic Sales Down 4.7% and 16% Respectively

[Sejong=Asia Economy Reporter Kwon Haeyoung] Last month, the automobile industry saw declines in production, exports, and domestic sales compared to the same period last year. Although the shortage of vehicle semiconductors somewhat eased, production disruptions at some companies due to semiconductor shortages impacted overall production, leading to a decrease. Thanks to the expanded export share of high value-added vehicle models, export value rebounded after three months.

According to the "November 2021 Automobile Industry Trends" released by the Ministry of Trade, Industry and Energy on the 15th, last month's vehicle production totaled 302,983 units, down 6.6% from the same period last year. Domestic sales were 143,815 units, down 16%, and exports were 178,994 units, down 4.7%.

With the easing of vehicle semiconductor supply disruptions, production increased 14.9% compared to the previous month, but overall production decreased compared to the same period last year due to production disruptions at Korea GM and others.

Looking at domestic sales, all finished car manufacturers saw an increase compared to the previous month, but compared to the same period last year, sales decreased due to a sharp drop in imported car sales combined with a base effect. Domestic sales in November last year reached 171,000 units, the highest ever for November. Among the top 5 best-selling cars last month, all were domestic models, with the new Sportage ranking first. Domestic cars saw a 13.3% decrease in domestic sales due to ongoing delivery backlogs, and imported cars also declined by 29.2% as sales of all foreign imports except Volvo decreased.

Despite continued semiconductor supply disruptions leading to a decrease in total export volume last month, export value increased by 3.3% to $4.12 billion. This is the highest amount since April, when production disruptions due to vehicle semiconductor shortages became apparent. The export of high value-added eco-friendly vehicles ($1.23 billion) reached an all-time high, significantly contributing to the rise in export unit price. Accordingly, the annual cumulative export value of eco-friendly vehicles also surpassed $10 billion for the first time in history.

This preference for eco-friendly vehicles is also evident in the domestic market. Last month, domestic sales of electric vehicles increased 20.2% year-on-year to 33,869 units, continuing a growth trend for 22 consecutive months. Looking at the domestic status of eco-friendly vehicle models from January to November, hybrid vehicles exceeded 200,000 units, and electric and hydrogen vehicles are expected to surpass 100,000 units within the year.

Meanwhile, exports of automobile parts also decreased by 2.2% compared to the same period last year due to the decline in exports.

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