Slow Local Sales
South Korea's auto exports rose for two months in a row in March on increased global demand for green cars and mid-sized and full-sized cars.
According to the data released by the Ministry of Trade, Industry and Energy on April 18, the total value of autos shipped overseas reached US$4.12 billion (4.71 trillion won) last month, up 4.1 percent from a year earlier. The figure increased for the second consecutive month.
The number of cars exported in March declined 5.1 percent on-year to 248,618 units, but strong demand for environmentally friendly cars and mid-sized and large-sized cars, which have higher unit prices, boosted the value of car exports.
Sales of green cars increased in North American and Europe after the Kia Niro and the Hyundai Ioniq was released.
Exports of electric and hybrid cars continuously grew this year from 10,079 units in January to 13,477 units in February and 14,907 units in March.
On the other hand, domestic sales backtracked 2.9 percent on-year to 168,990 units due to the base effect of the temporary cut to individual consumption tax rates on passenger cars last year.
Sales of cars made by local automakers decreased 1.4 percent to 144,814 units with sales promotions, including the release of new cars, while sales of imported car dropped 10.8 percent to 24,176 units due to the suspension of business of some foreign automakers.
With the decrease in domestic sales and exports, auto production declined 2.7 percent to 406,897 units last month.
Auto parts exports fell 3.4 percent to US$2.2 billion (2.51 trillion won) as local automakers reduced production in overseas plants. Their productions in the U.S. and Asia plants decreased 12.3 percent and 13.5 percent, respectively.
However, auto parts exports grew 96.1 percent in Europe, which shows a sign of economic recovery including Russia and 47.3 percent in the Middle East, which sees a rising demand of knock down (KD) products.