Due to Labor Strikes at GM Korea and Kia Motors
In November, labor strikes at GM Korea and Kia Motors slashed domestic car production significantly, a report showed. Exports also plunged more than 10 percent from a year ago due to the resurgence of the COVID-19 infections.
Car production stood at 324,472 units in November, down 6.3 percent from a year before, said a report released by the Ministry of Trade, Industry and Energy on Dec. 14. GM Korea and Kia Motors suffered a drop of 15,631 units and 4,505 units, respectively. Both carmakers accounted for more than 92 percent of the total decline in car production.
Exports also plunged 10.2 percent on year to 196,657 units. This is due to the spread of COVID-19 cases in major markets such as Europe and the Middle East, despite the recovery of demand in North America and the effect of new model launches.
Auto exports had declined by a double-digit figure for five consecutive months from April before switching to an increase in September. But it dropped for two consecutive months after shifting back to a decline in October.
However, exports of electric vehicles continued to swell for 40 consecutive months. The proportion of eco-friendly cars in overall auto exports grew from 17.1 percent in 2019 to 18.4 percent in 2020, while those of electric cars such as the Kona EV and Niro EV also climbed from 33.3 percent to 45.2 percent.
Carmakers enjoyed strong domestic sales. They sold 171,228 units, up 5.8 percent from November 2019, as new models and a cut in individual consumption tax ahead its sunset fueled demand. Domestic car sales rose 5.8 percent to 142,158 units, while imported car sales increased 5.6 percent to 29,070 units.