How Did South Korea's Auto Exports Surge by 16.8% in September?

Synopsis
Key Takeaways
- South Korea's auto exports rose 16.8% in September 2023.
- Eco-friendly vehicle exports surged by 47.5% year-on-year.
- Exports to the European Union increased by 52.8%.
- Domestic EV sales hit a record high of 28,760 units.
- The cumulative value of auto exports reached $54.1 billion in 2023.
Seoul, Oct 20 (NationPress) South Korea's automotive exports saw a notable increase of 16.8% compared to the same month last year in September, primarily fueled by a strong demand for eco-friendly vehicles across Europe and Asia, as reported on Monday. The total value of vehicle exports reached $6.41 billion last month, marking the highest amount recorded for any September, according to data released by the Ministry of Trade, Industry and Resources, as reported by the Yonhap news agency.
In terms of quantity, vehicle exports rose 11% year-on-year, totaling 228,000 vehicles.
The cumulative value of automobile exports from January to September has reached a historic $54.1 billion.
The ministry indicated that the demand for Korean automobiles grew in major markets, with the exception of North America, where Korean vehicles are currently subjected to a 25% tariff imposed by the Trump administration.
Exports to the European Union witnessed a significant surge of 52.8% year-on-year, amounting to $958 million in September, while shipments to Asia skyrocketed by 62.3% to $823 million.
Conversely, shipments to North America declined by 5.3% to $2.8 billion, with exports to the US specifically dropping by 7.5% to $2.4 billion.
When analyzing by vehicle type, exports of eco-friendly vehicles, including electric cars (EVs), hybrids, and hydrogen-powered cars, surged by 47.5% year-on-year, reaching 90,496 units last month. This milestone marks the first instance where monthly exports of eco-friendly cars exceeded 90,000 units, accounting for nearly 40% of total auto exports.
Specifically, hybrid car shipments rose by 55.7% to 57,824 vehicles, while EV exports increased by 38.9% to 29,288 units, marking a consistent increase for the fourth month in a row.
Domestically, automobile sales escalated by 20.8% year-on-year, totaling 158,000 units last month, which is the highest figure recorded since November 2023.
Sales of domestic EVs soared by 135% year-on-year, reaching a record monthly high of 28,760 units.
The cumulative number of EV sales in South Korea from January to September rose by 57.5% to 170,000 units, already surpassing last year's total annual sales of 142,000, according to the data.
Additionally, domestic car production increased by 8.9% to 334,000 units in September, attributed to an increase in the number of working days compared to the previous year. This year, the Chuseok holiday was celebrated in early October, while in 2024, it will occur in September.