K-Electric Vehicles, Thriving Instinct in the US and Europe... Export Value Soars
by Choi Daeyul
Published 19 Apr.2022 11:15(KST)
Updated 14 Mar.2023 12:48(KST)
Export Amount of $1.9 Billion in Q1 This Year
82% Increase Compared to Same Period Last Year
Contrasted with Overall Weakness in Car Exports
Finished vehicles are waiting in the storage yard next to the export shipment dock at Hyundai Motor Company's Ulsan plant.
[Asia Economy Reporter Choi Dae-yeol] This year, the proportion of South Korea's electric vehicle (EV) imports in major countries in the United States and Europe has surged. This is a result of proactive responses as the local markets expanded, contrasting with the sluggish overall domestic automobile exports due to parts supply shortages and logistics and transportation disruptions.
As the global automotive production focus shifts to electric vehicles, competition to establish EV ecosystems, especially among major advanced countries, has intensified.
According to statistics from the Korea International Trade Association on the 19th, the export value of electric vehicles in the first quarter of this year was recorded at $1.911 billion, an 82% increase compared to the same period last year. EV exports were negligible at $250,000 annually as recently as 2012, but surged more than 20,000 times to $5.6 billion last year. ▷Related article page 3
The rapid growth of electric vehicles contrasts with the stagnation in overall automobile exports. In the first quarter of this year, South Korea's total automobile exports amounted to $11.868 billion, a 0.4% decrease from the same period last year. This was due to the shortage of parts such as vehicle semiconductors caused by the COVID-19 pandemic and transportation difficulties worldwide triggered by events such as the Russian invasion.
A significant portion of EV exports went to Europe and North America, accounting for over 94% of the total export volume. By country, the United States, which ranked third last year, increased more than sevenfold to become the largest importer of Korean electric vehicles. EV exports to the U.S. in the first quarter of this year reached $737 million, nearly matching last year's annual export volume.
This surge in demand is due to the Biden administration's push for an eco-friendly drive and expansion of EV adoption. The U.S., along with Europe and China, is considered one of the world's three largest automobile markets and is home to Tesla, the world's largest EV manufacturer. However, it has been criticized for lagging behind in electric vehicles. With the expectation of prolonged high oil prices, local automakers such as General Motors (GM) and Ford have announced plans to release new electric vehicles, which is expected to accelerate the spread of EV adoption.
In Europe, which had actively promoted EV adoption early on, demand for Korean electric vehicles also increased significantly. The United Kingdom, which was South Korea's top EV export destination last year, saw a 34% increase through the first quarter of this year, and exports to Germany, the world's largest EV export country by value, also rose by 15%.
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