Record High Vehicle Exports in First Half of the Year... Positive Signs for Annual Production Surpassing 4 Million Units

South Korea's automobile exports reached a record high of $35.7 billion in the first half of this year. Domestic automobile production also recovered to pre-COVID-19 pandemic levels in the first half of the year, and annual production is expected to surpass 4 million units for the first time in five years.

According to data from the Ministry of Trade, Industry and Energy on the 18th, automobile export value from January to June this year increased by 46.6% compared to the same period last year, reaching $35.7 billion. Among them, exports of eco-friendly vehicles (electric, plug-in hybrid, hybrid) rose 70% year-on-year to $12.4 billion.

Vehicles waiting for export at the export shipment dock of Hyundai Motor Company Ulsan Plant
[Photo by Yonhap News]

The most exported models were the Korea GM Trailblazer, Hyundai Avante, Hyundai Kona, Kia Niro, and Kia Morning, in that order. By region, exports increased mainly to North America and Europe, where domestically produced eco-friendly vehicles have gained strong demand.

In the first half of this year, the number of exported eco-friendly vehicles reached 385,000 units, accounting for one out of every four vehicles exported during the period. Among the 385,000 eco-friendly vehicles, electric vehicles accounted for about half with 182,000 units exported. Most of the remainder were hybrids (164,000 units).

Not only exports but also automobile production in the first half of the year recovered to 2 million units for the first time in four years. From 2020 to last year, semiconductor supply shortages and the COVID-19 pandemic caused disruptions in parts supply, making it difficult to exceed 2 million units in half-year production. Starting this year, all adverse factors have been overcome, and production has returned to a normal trajectory. Accordingly, domestic automobile production this year is expected to surpass 4 million units again for the first time in five years since 2018 (4.03 million units).

Gang Nam-hoon, chairman of the Korea Automobile Mobility Industry Association (KAMA), said, "This result was supported by the government's active efforts, including aggressive domestic demand stimulation policies such as exemption from small car bond purchases and fuel tax reductions, as well as enabling commercial (lease and rental) electric vehicles to receive tax credit benefits in response to the U.S. Inflation Reduction Act (IRA)." He added, "Exports of eco-friendly vehicles have led the overall boom in South Korea's automobile industry."

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