Korean Cars' Global Market Share in H1 at 7.7%... Down 0.2%P YoY

Automobile Industry Association Report... Chinese Cars Increase from 15.4% to 19.1%

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chae-seok] South Korea's share of the global automobile market in the first half of the year remained at 7.7%, slightly lower than the first half of last year.

According to the "2022 First Half Overseas Major Automobile Market Sales and Policy Trends" report released by the Korea Automobile Manufacturers Association (KAMA) on the 18th, South Korean cars' market share in the first half of this year was 7.7%, down 0.2 percentage points (p) from 7.9% in the first half of last year.

Market shares increased in major markets such as Europe (7.6% → 9.9%) and the United States (9.7% → 10.4%), but slightly decreased in emerging markets such as India (23.3% → 21.3%). However, considering that the market shares of American cars (-8.4%), European cars (-15.7%), and Japanese cars (-11.8%)?excluding Chinese cars?declined sharply in the first half, KAMA described the performance as relatively favorable.

The leading market share holder in major global markets in the first half was European cars at 26.7%, but this was 2.6 percentage points lower than the first half of last year. Japanese cars followed at 26.5% (27.7% in the first half of last year). Chinese cars significantly increased their share to 19.1%, driven by strong performance from electric vehicle manufacturers such as BYD, mainly in the domestic market. This is a 3.7 percentage point increase compared to 15.4% in the same period last year.

KAMA emphasized that major countries such as Europe and the United States are strengthening regulations on internal combustion engine vehicles to address climate change while increasing subsidies to foster their domestic industries, and that South Korea also needs to respond actively. The European Union (EU) Environment Council agreed in June on a comprehensive climate change policy that includes banning the sale of new internal combustion engine vehicles within the EU, and the United States introduced the Inflation Reduction Act (IRA), which provides subsidies only for electric vehicles produced domestically.

Jung Man-ki, chairman of KAMA, said, "With global automobile market demand not yet recovered due to semiconductor supply issues after COVID-19 last year, expanding global market share requires strengthening labor flexibility and securing competitiveness in future vehicles such as electric-powered cars," adding, "Active public-private responses are necessary regarding the IRA."

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