Auto Production and Exports Increase in March

Korea’s automobile production, exports and domestic sales all increased in March. However, the March data did not reflect the spread of the new coronavirus to the United States and the European Union (EU). The negative effects of the epidemic are expected to begin to be felt in earnest in April.

In March, automobile production increased by 6.8 percent on year to 369,165 units, the Ministry of Trade, Industry and Energy said. The increase was attributable to the fact that the number of operating days rose by two days from a year before and that carmakers launched new models such as Hyundai Genesis' first SUV model GV80 and new sedan G80, and Renault Samsung's SUV XM3.

Domestic sales of automobiles increased 10.1 percent on the back of a 70 percent individual car tax cut which started in March. GM Korea's small SUV, the Trailblazer enjoyed a 424 percent increase in sales compared to February, leading the growth in domestic sales. Among imported cars, German brands including Mercedes-Benz and BMW posted a 56 percent increase in sales compared to the same period in 2019.

Exports hit 21,900 units, up 1.3 percent from the same month of 2019. Exports to North America increased 19.5 percent from March 2019, and exports to the Middle East (34.9 percent) and Oceania (8.3 percent) also swelled. Auto parts exports also increased 0.5 percent on year thanks to strong exports to North America.