This Year’s Electric Vehicle Supply Surpasses 230,000 Units... Auto Parts Companies’ Operating Profit Increases by 253%

Government Holds the 17th Innovation Growth BIG3 Promotion Meeting

[Sejong=Asia Economy Reporter Kwon Haeyoung] This year, more than 100,000 electric vehicles and 9,000 hydrogen vehicles are expected to be sold domestically, bringing the cumulative supply to 230,000 and 19,000 units respectively. Annual exports are also expected to surpass 150,000 electric vehicles and 1,000 hydrogen vehicles. Despite challenging conditions such as the prolonged shortage of automotive semiconductors, the sales revenue of automotive parts companies from the first to third quarter of this year increased by 17.4% year-on-year, and operating profit surged by 253%.

On the 21st, the government reviewed the BIG3 industry trends and sector-specific policy implementation status at the 17th Innovation Growth BIG3 Promotion Meeting chaired by Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki.

First, in the domestic market from January to November this year, electric vehicle sales increased by 106.6% year-on-year to 91,169 units, and hydrogen vehicle sales rose by 49.8% to 8,226 units. It is expected that sales will exceed 100,000 and 9,000 units respectively by the end of the year, marking a significant increase phase in domestic eco-friendly vehicle sales.

The cumulative supply of eco-friendly vehicles reached 226,708 electric vehicles as of November, surpassing 200,000 units for the first time in 10 years since their introduction in 2011. The cumulative supply of hydrogen vehicles was recorded at 19,170 units.

Exports from January to November this year also increased, with electric vehicles rising 21.4% year-on-year to 134,440 units and hydrogen vehicles increasing 12.3% to 1,026 units. Eco-friendly vehicles are emerging as a key export industry, accounting for 7.3% of total automobile exports. According to SNE Research, domestic companies hold a 58% share of the global hydrogen vehicle market and rank first, while electric vehicles hold a 5.5% share, ranking fifth from January to October this year.

The management situation of automotive parts companies also improved compared to last year. Based on cumulative data from the first to third quarter this year, the sales revenue of 82 listed domestic parts companies increased by 17.4% year-on-year to KRW 48.5 trillion, and operating profit surged by 253% to KRW 1.4819 trillion. An official from the Ministry of Trade, Industry and Energy analyzed, "Despite difficult conditions such as reduced finished vehicle production due to the prolonged shortage of automotive semiconductors and the investment burden for future vehicle transition, the scale of production cuts caused by automotive semiconductors was minimized compared to competing countries, resulting in relatively good performance."

The number of business restructuring approvals for automobile and parts companies under the Corporate Vitality Act also increased by 77% this year to 39 companies (63 cumulative), compared to 22 companies last year, indicating an accelerating trend in parts companies' transition to future vehicles.

An official from the Ministry of Trade, Industry and Energy stated, "We will expand the demand base by supplying 500,000 zero-emission vehicles by 2022 and make proactive investments to develop six core technologies. We will support business restructuring and digital transformation of parts and maintenance companies and expand a future vehicle-friendly legal and institutional foundation."

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