Parts Exports Shrink
Korea’s automobile exports hit an all-time monthly high in January as the shortage of automotive semiconductors eased and sales of eco-friendly cars grew. However, exports of auto parts contracted.
Car exports in January totaled US$4.984 billion, the highest monthly figure ever, according to the data released by the Ministry of Trade, Industry and Energy on Feb. 20. This represented an increase of 21.9 percent compared to a year ago. Previously, the highest January export record was US$4.2 billion, posted in January 2013. For reference, semiconductor exports amounted to US$6 billion in Januaru, down 44.5 percent from a year ago.
A total of 200,825 units were exported in January 2023, up 11.3 percent from 180,013 units in January 2022. Carmakers rolled out a total of 306,738 units, including those sold in the Korean market. Compared to January 2022, production increased 13.2 percent.
The top five export models were the Hyundai Avante (15,446 units), the GM Korea TrailBlazer (15,311 units), the Kia Kona (12,633 units), the Kia Morning (11,912 units), and the Kia Niro (11,864). Exports increased by double digits at Kia (19.7 percent), GM Korea (32.3 percent), and SsangYong Motor (42.1 percent).
Exports of eco-friendly cars (electric cars, hydrogen cars, hybrid cars, plug-in hybrid cars) rose by 29.8 percent to 57,000 units. The percentage overwhelmed an increase in overall exports (11.3 percent) including exports of vehicles with internal combustion engines. Eco-friendly cars are more expensive than vehicles with internal combustion engines, so the export amount increased even more.
Compared to US$1.26 billion in January 2022, exports soared by 42.3 percent to US$1.79 billion. The proportion of eco-friendly vehicle exports in total exports crossed 35 percent for the first time. In particular, sales of electric vehicles increased by 63.1 percent compared to January 2022. The Ministry of Trade, Industry and Energy analyzed that while Hyundai Motor Co.'s IONIQ 5 and Kia EV6 were steadily selling, IONIQ 6 exports to the United States began, driving sale growth.
However, domestic sales stood at only 642 units in January 2023. Sales were quite sluggish in January, as the time to confirm subsidies for electric vehicles was delayed to Feb. 13.
Auto parts exports declined. They stood at only US$1.79 billion, down 16.2 percent from January 2022. Pre-purchases of parts and the Chinese holiday season (January 21-27) had an impact on auto parts exports. Lee Hang-ku, a researcher at the Korea Automobile Research Institute, said, “This is because overseas automakers purchased parts in advance and stocked them up with supply chain instability in mind.”