Korea’s auto exports set a new monthly record in August, marking the 14th consecutive month of double-digit growth since July last year, bringing this year’s cumulative auto exports to US$46.45 billion at the end of August.
According to the Ministry of Trade, Industry and Energy (MOTIE) on Sept. 19, the automobile exports in August reached US$5.292 billion, up 28.7 percent from a year earlier. This is the largest-ever August exports.
By region, those to North America came in at US$2.599 billion (28.1 percent), those to the EU hit US$859 million (66.2 percent). Those to Asia stood at US$435 million (15.2 percent) and those to the Middle East US$462 million (29.3 percent). They were US$216 million (17.0 percent) for Latin America, and US$380 million (40.0 percent) for Oceania. Therefore, Korea’s car exports enjoyed a double-digit increase, marking an overall increase.
However, they dropped in the following regions – the rest of Europe (US$312 million and a drop of 7.8 percent) and Africa (US$27 million and a drop of 19.2 percent).
By company, Hyundai Motor recorded an increase of 84,553 units (18.7 percent), Kia Corp. an increase of 72,273 units (4.7 percent), GM Korea an increase of 28,410 units (92.5 percent), and KG Mobility an increase of 6,920 units (85.9 percent), while Renault Korea Motors a decrease of 6,912 units (a drop of 9.9 percent).
In particular, Korea’s exports of eco-friendly vehicles amounted to US$1.798 billion in August, up 47.8 percent year on year. The number of units was 53,000, accounting for 26 percent of the total exports of 190,000, with EV exports leading the overall increase, up 61.2 percent year on year.
Korea’s car exports to the United States have climbed for nine consecutive months since December last year, with its August exports reaching a record high of 14,000 units, up 153 percent from August of 2022 when the IRA took effect. Korean automakers’ market share in the United States eclipsed 10 percent for the second consecutive month.
While the United States has imposed some conditions on IRA subsidies such as requiring the final assembly of electric vehicles in North America and battery materials to be sourced from countries with free trade agreements (FTAs) with the United States, Korean automakers have been authorized to receive subsidies of up to US$7,500 for commercial vehicles such as rentals and leases. As a result, sales of Korean-made eco-friendly vehicles such as electric, hydrogen, and hybrid vehicles eligible for the IRA subsidies swelled in the United States for nine consecutive months. Compared to August of last year, when the IRA took effect, sales have increased by 153 percent. Their market share also exceeded 10 percent in the United States for two consecutive months.
Despite difficult economic conditions such as high global interest rates and inflation, Korea enjoyed strong automobile exports and domestic auto production exceeded 300,000 units in August for the first time in 10 years since 2013.
However, in the Korean market, sales of Korean-made cars rose by two percent year on year in August while sales of imported cars fell 11.2 percent, resulting in a 0.7 percent decline in overall sales to 130,667 units.
In August, Korea’s auto production spiked 9.6 percent year on year to 319,059 units, marking the 16th consecutive month of growth.