Eco-friendly Cars and SUVs Drive Growth... Export Price per Vehicle Up 10% This Year

$21,030 Per Unit

[Asia Economy Reporter Choi Dae-yeol] The average price per car produced domestically and exported overseas continues to rise this year. This is due to an increase in relatively expensive vehicle types such as eco-friendly vehicles like electric cars and sports utility vehicles (SUVs), mainly in key export regions such as North America and Europe.

Just 6 to 7 years ago, the export price per domestic car remained at around $14,000, but last year it exceeded $20,000 for the first time. With global demand for high-priced vehicles increasing, the price upward trend is expected to continue.

According to the Korea Automobile Manufacturers Association on the 8th, the export price per car as of January this year was $21,030. This figure was calculated based on the total number of cars exported and the export amount. It is about 10% higher compared to the same period last year. It is also about 3.3% higher compared to last year's average.

The total volume of complete car exports has steadily declined over the past few years, but the export price per car has continuously increased. The domestic complete car industry exported 2.97 million units in 2015, but due to the global demand shrinkage caused by COVID-19 in 2020, it dropped to 1.89 million units, nearly a million fewer. Conversely, the export price per car rose more than 25% over five years, from $14,300 to $17,901 during the same period.

The Kia EV6 was exhibited at the LA Auto Show held last November.

The price increase is due to growing demand for eco-friendly vehicles such as electric and hybrid cars, mainly in advanced markets like North America and Europe. Electric and hybrid vehicles have different powertrains, making them more expensive even within the same model. The compact SUV XM3, produced domestically by Renault Samsung and mainly exported to Europe, had over 30,000 hybrid units last year, accounting for more than half of its export volume. The United States, where electric vehicle penetration was relatively slow compared to China and Europe, has also been rapidly expanding electric vehicle sales centered on Hyundai and Kia since the Biden administration.

The increase in sales of Hyundai's premium brand Genesis due to active global marketing, as well as the rising demand for relatively large SUVs across various markets, have also played a complex role. Kia surpassing Hyundai as the top exporter is also interpreted as influenced by the high proportion of RV-type vehicles.

An industry insider said, "As China hones its electric vehicle technology based on domestic demand, the market situation has clearly changed from the existing internal combustion engine vehicles," adding, "Considering that the focus will shift to electric vehicles in the future, the government should actively support expanding production infrastructure domestically."

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