In February, automobile exports, production, and domestic sales declined from the same month of 2023 and the previous month of January.
The descent was attributable to a slowdown in the growth of electric vehicle sales in both the Korean and overseas markets, as well as a drop in production and shipping activities due to the Lunar New Year holidays in February.
According to monthly automotive industry data released by the Korean Ministry of Trade, Industry and Energy on March 19, auto exports in February totaled US$5.16 billion, down 7.8 percent from the same month of 2023. On a month-on-month basis, it was down 17 percent.
Exports of eco-friendly vehicles, including electric and hybrid vehicles, totaled US$1.71 billion, down 15.3 percent and 17.6 percent from the same month of 2023 and February, respectively.
By region, exports were up 1.0 percent year over year to North America, the largest market, but down to most of the other regions including the European Union (-23.1 percent), Asia (-0.9 percent), the Middle East (-30.0 percent), Latin America (-17.5 percent), and Oceania (-8.2 percent). On a month-over-month basis, exports to North America also fell 24.6 percent.
The value of automotive exports in February was the lowest in 13 months since US$4.98 billion in January 2023. The value of eco-friendly vehicle exports was the lowest in 15 months since November 2022.
Auto exports are also declining in terms of vehicle volume. In February, 198,653 vehicles were exported, down 11.0 percent and 18.3 percent from the same month of 2023 and year-on-year, respectively. Of these, pure electric vehicle exports were down even more, with 24,318 units, down 20.7 percent from 2023 and 19.9 percent from February.
Auto production and domestic sales also shrank together.
In February, domestic auto production fell 13.6 percent from the same month of 2023 and 16.2 percent from the previous month to 300,459 units due to the construction of production facilities by major companies and the February Lunar New Year holiday.
Hyundai and Kia led the way, producing 129,877 and 121,919 units, respectively, down 19.2 percent and 13.7 percent from 2023.
GM Korea ramped up production by 20.4 percent and KG Mobility (KGM) by 5.2 percent thanks to volume production of the Trax Crossover.
In February, domestic sales totaled 115,753 units, down 21.2 percent from 2023.
By brand, Hyundai and Kia sold 47,653 and 44,076 units, respectively, down 26.7 percent and 12.0 percent from the same month last year.
By vehicle type, domestic sales of eco-friendly cars totaled 40,102 units, down 11.7 percent from 2023 and up 5.8 percent from February.