Car Exports Surpass $40 Billion in 7 Months... Ahead of Last Year by 3 Months

The Ministry of Trade, Industry and Energy announced on the 17th that automobile export value reached $41.6 billion through last month this year.

This is a 41.0% increase compared to the same period last year, surpassing $40 billion in the shortest period ever. Last year, when the annual automobile export value was the highest on record, it took 10 months to exceed $40 billion. The ministry predicted, "If the current trend continues, this year's automobile export value will achieve an all-time high."

Trends in Export Volume and Export Value of Automobiles and Eco-friendly Vehicles

Automobile exports last month amounted to $5.9 billion, a 15.0% increase compared to the same period last year. This is the best performance for any July on record, continuing a double-digit growth rate for 13 consecutive months. Exports of eco-friendly vehicles reached $2.0 billion, up 36.0% during the same period. The number of eco-friendly vehicles exported was 60,000 units, accounting for more than one-quarter of the total 230,000 exported vehicles.

Automobile production in July was 353,000 units, an 8.8% increase compared to the same period. This marks 15 consecutive months of growth. Domestic sales were 136,000 units, a 5.0% decrease compared to the same period. This is the first decline in domestic market sales in 12 months since August last year. The ministry analyzed that this was due to the end of the individual consumption tax reduction policy last month, a decrease in the new car effect, and waiting demand ahead of new car launches in the second half of the year.

As the automobile industry is the top sector in domestic production, employment, and exports, the government stated it will work closely with companies to respond swiftly to trade issues and support the continuation of the upward trend. A representative example is the U.S. Inflation Reduction Act (IRA), which allows commercial vehicles to receive subsidies regardless of North American assembly and battery requirements. Last month, 13,000 eco-friendly vehicles received subsidies in the U.S., the highest number ever. The share of commercial vehicles also increased from 5% last year to 49% last month.

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