Automotive Industry Contracts in August

The Ministry of Trade, Industry and Energy announced on Sept. 18 that South Korean automakers’ production, domestic sales and exports decreased 6.4 percent, 1.2 percent and 15.8 percent from a year ago last month, respectively.

Specifically, the production volume totaled 233,357 vehicles amid the second wave of COVID-19. Those of Hyundai, Kia and Renault Samsung fell 12.6 percent, 5.2 percent and 21.7 percent year on year whereas GM Korea and SsangYong increased theirs by 19 percent and 16.9 percent, respectively.

The ministry explained that the production volumes of U.S., Japanese and German carmakers dropped 33.1 percent, 25.6 percent and 39 percent for the first seven months of this year and South Korean carmakers fared relatively well by showing a decrease of 17.4 percent in that period. Chinese automakers’ decline stood at 11.8 percent.

The domestic sales added up to 135,349 with the first decrease in six months. A total of 111,190 South Korean cars (down 4.9 percent) were sold along with 24,159 imported cars (up 20.7 percent).

The exports, which were 136,538 vehicles last month, fell for the 13th consecutive month. Although those to North America increased 12.3 percent to US$1.25 billion, those to the European Union, the Middle East, Latin America and Asia dropped 26.9 percent, 50.2 percent, 58.8 percent and 36.3 percent to US$560 million, US$358 million, US$174 million and US$168 million, respectively.

In the meantime, the domestic green car sales volume jumped 85.4 percent year on year to 15,930 to increase for the seventh consecutive month. In addition, the ratio of green car sales to domestic sales hit an all-time high of 11.8 percent and electric vehicle exports rose 22.2 percent from a year ago.