March Auto Exports Reach $6.37 Billion, Second Highest on Record... Hybrid Vehicles Lead the Way

Production and Domestic Sales Both Rise in Q1
Exports Remain Flat Due to Impact of Middle East Conflict

In March 2026, Korea's automobile industry continued to see increases in exports, domestic sales, and production across the board. However, due to the impact of the war in the Middle East, exports to certain regions declined, resulting in the total exports for the first quarter remaining flat.

According to the "March and First Quarter Automobile Industry Trends" report released by the Ministry of Trade, Industry and Energy on April 15, automobile export value in March reached USD 6.37 billion, marking the second highest March figure on record. Notably, hybrid vehicle exports surged by 79% year-on-year, leading the overall export growth.

On the other hand, total exports for the first quarter decreased by 0.2% compared to the same period last year. By region, exports to the European Union increased by 14.2%, while exports to Asia (-38.9%) and the Middle East (-21.3%) declined. The ministry attributed this to disruptions in logistics and weakened demand caused by the war in the Middle East.

Domestic demand showed signs of recovery. Domestic automobile sales in March totaled 165,000 units, up 10.2% from a year earlier. Cumulative sales in the first quarter rose 5.3% to 409,000 units. Among March sales, eco-friendly vehicles such as electric and hybrid cars accounted for 98,000 units, representing approximately 59% of the total.

Production also maintained its upward trend. Automobile production in March amounted to 387,000 units, a 4.5% increase from the previous year, while first-quarter production grew 1.3% to 1,026,000 units. As a result, domestic automobile production exceeded 1 million units in the first quarter for the fourth consecutive year.

The ministry stated that it will continue to monitor risks in parts supply and maritime logistics stemming from instability in the Middle East, and will maintain support for the industry to ensure the ongoing growth of production and exports.

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