March Auto Production, Domestic Sales, and Exports All Decline... Only 'Eco-friendly Cars' Perform Well

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[Asia Economy Sejong=Reporter Dongwoo Lee] In March, production, domestic sales, and exports in the automobile industry all declined compared to the same period last year. It is analyzed that the backlog of vehicle deliveries continued due to supply disruptions caused by the semiconductor shortage for vehicles and the suspension of production plant operations amid the spread of COVID-19 in China. On the other hand, eco-friendly vehicles achieved record highs in both export volume and value for any March on record.

According to the 'March 2022 Automobile Industry Trends (Preliminary)' released by the Ministry of Trade, Industry and Energy on the 15th, the automobile industry last month recorded production down 9.5%, domestic sales down 19.1%, and export volume down 7.7% compared to the same month last year.

By company, production volumes of Hyundai and Kia decreased by 14.2% and 11.6%, respectively. Due to the base effect from the sharp drop in production in March last year, production at Ssangyong Motor and Renault Korea increased by 11.0% and 92.4%, respectively.

With the decrease in production, domestic sales also fell by 19.1% to 138,637 units. For domestic cars, sales dropped 21.0% to 111,065 units due to worsening delivery backlogs, while imported cars recorded a 10.5% decrease to 27,582 units. Domestic sales of imported cars have been declining for seven consecutive months since September last year.

Exports recorded 179,630 units, down 7.7% from the same month last year. The export value decreased by 9.7% to 3.97 billion USD, marking a decline in both volume and value for the first time in five months since October last year.

The decline in exports is analyzed to be influenced by reduced production volumes due to semiconductor and Chinese parts supply shortages, as well as the suspension of shipments to Russia. Although export values to Eastern Europe and the Middle East increased by 15.6% and 40.5%, respectively, exports to major domestic markets such as North America and the European Union (EU) decreased by 12.3% and 42.0%, respectively.

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Eco-friendly vehicles showed growth in both domestic sales and exports. Domestic sales increased by 26.8% year-on-year to 38,784 units, accounting for 28.0% of total vehicle sales, achieving the highest monthly sales volume and share on record.

Domestic cars increased by 32.2% to 25,236 units, while imported cars rose by 17.9% to 13,548 units, with domestic cars showing a much larger increase than imported ones. Domestic eco-friendly vehicles, hybrids, and electric vehicles all recorded the second-best performance ever, driven by strong sales of hybrids (18.6%) and electric vehicles (79.6%).

Export volume increased by 45.5% year-on-year to 41,320 units, and export value rose by 43.1% to 1.17 billion USD, marking the highest export volume and value for any March on record. All vehicle types except hydrogen cars increased by double digits compared to the same month last year, accounting for 23.8% of total passenger car exports.

The Ministry of Trade, Industry and Energy analyzed, "Electric vehicles such as the Ioniq 5 and EV6, which received favorable reviews in overseas markets, along with most other vehicle types, formed a solid export growth trend, driving eco-friendly vehicle exports."

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