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Auto Exports Record All-time High, but Not Much Growth from Previous Year
Mixed Growth
Auto Exports Record All-time High, but Not Much Growth from Previous Year
  • By matthew
  • January 12, 2015, 05:13
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Hyundai Motor's Tucson ix.
Hyundai Motor's Tucson ix.

 

The total amount of exports of complete vehicles in 2014 reached US$48.9 billion (53.35 trillion won), recording an all-time high. However, the figure is up only 0.6 percent from US$48.6 billion (53.03 trillion won) of 2013.

Overseas shipments of vehicles stood at 3.061392 million units, down 0.9 percent from the figure in 2013 to the contrary.

As General Motors (GM) decided to withdraw its Chevrolet brand from Western Europe, the number of exported vehicles of GM Korea plunged sharply. Also, Korea’s auto exports fell due to sluggish markets in Eastern Europe and Latin America.

The reason why the total amount of exports increased despite the decreased number of overseas shipments is that the average prices of exports increased due to the rise in the share of sports utility vehicles (SUVs) in exports.

Thanks to the release of new models, the decrease of individual consumption tax and the expansion of SUV demand, its domestic sales increased 8.4 percent to 1.657397 million in 2014, compared to the previous year.

Imported cars account for 13 percent of its domestic sales. The growing interest in fuel-efficient vehicles raised the demand for foreign diesel vehicles, rapidly.

A total of 214,608 foreign cars were sold in Korea last year, which is up 47.7 percent from the figure of 2013. Germany's big four brands -- BMW, Volkswagen, Mercedes-Benz, and Audi -- accounted for 68 percent of the total domestic sales of foreign vehicles.

Non-German brands, including Ford, Chrysler, and Land Rover, also saw progress. Ford Korea sold 8,718 units in Korea last year, which is a rise of 20.8 percent compared with the previous year. The figure is not only its all-time high record, but also the figure surpassing 6,840 units of Toyota, excluding the Lexus.

Chrysler also attained an achievement. Chrysler Korea sold 5,244 units, which is up 26.6 percent from 2013.

In addition, Land Rover and Peugeot sold 4,675 and 3,118 units, respectively, while Volvo sold 2,976 units, gaining Korean consumers’ hearts and showing a maximum of 52 percent growth.