Car Production, Domestic Sales, and Exports Achieve 'Triple Growth'... Record High Sales of Eco-Friendly Vehicles

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Dongwoo Lee] Until last month, South Korea's automobile industry production, domestic sales, and exports increased for two consecutive months. It is the first time in 1 year and 8 months that all three major indicators have increased for two consecutive months. Domestic electric vehicle sales exceeded 20,000 units, setting a record high for eco-friendly vehicle domestic sales.

According to the "September 2022 Automobile Industry Trends" announced by the Ministry of Trade, Industry and Energy on the 14th, monthly automobile exports reached 192,863 units, up 27.5% compared to the same month last year. It ranks third among this year's monthly performances. Export value increased by 34.7% to 4.79 billion dollars. This is interpreted as a base effect due to the worsening supply bottleneck of automotive semiconductors in Southeast Asia, including Malaysia, at the end of September last year.

The overseas popularity and increased production of Hyundai Motor and Kia's eco-friendly vehicles and the mid-sized three companies' sports utility vehicles (SUVs) and pickup models drove exports. As the proportion of eco-friendly vehicles in export value increased, it was the second highest monthly export amount ever. It also exceeded 4 billion dollars for three consecutive months. The export volume of eco-friendly vehicles increased by 39% to about 48,000 units, and the amount increased by 35% to 1.41 billion dollars. In particular, exports to the major market of North America increased by 70% to 2.26 billion dollars compared to last year. The export value of electric, hydrogen, and plug-in hybrid vehicles to the United States surged by more than 400%.

Last month's automobile production increased by 34.1% year-on-year to 307,721 units, showing an increasing trend for five consecutive months. This is due to the improvement in the supply shortage of automotive semiconductors and an increase in working days. The mid-sized three companies, including Korea GM, Ssangyong Motor, and Renault Korea Motors, saw production increase by 84.3% due to overseas demand for SUVs and pickup models and the effect of new cars. Hyundai Motor and Kia also increased by 40.0% and 12.7%, respectively.

Last month's domestic sales increased by 23.1% year-on-year to 140,242 units, showing positive growth for two consecutive months. Domestic cars increased by 23.7% to 112,918 units, and imported cars increased by 20.4% to 27,324 units. The domestic sales growth rate of domestic cars turned positive for the first time in seven months due to the new car effects of Hyundai Motor's Ioniq 6 and Ssangyong Motor's Torres.

Eco-friendly vehicles recorded their highest ever shares in both domestic sales and exports at 29.7% and 25.2%, respectively. Domestic sales of eco-friendly vehicles reached a record high of 41,585 units, up 36.7% from last year. Thanks to strong electric vehicle sales, growth has continued for eight consecutive months. Hybrid vehicles increased by 14.1% to 19,176 units, and electric vehicles increased by 95.4% to 20,485 units. Hydrogen vehicles also increased by 15.3%, while only plug-in hybrid vehicles decreased by 61.8%. This is the first time electric vehicle domestic sales have surpassed hybrid vehicle domestic sales.

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