The initial six months of 2023 witnessed Korean auto exports hitting an all-time high of US$35.7 billion, a meteoric rise of 46.6% year-on-year. With the addition of auto parts exports, the total climbs to a staggering US$47.3 billion, as stated by the Ministry of Trade, Industry and Energy (MOTIE).
June saw Korean car manufacturers shipping out over 241,900 general vehicles, thereby adding US$6.23 billion to the half-yearly sum. Eco-friendly vehicle exports soared to more than 68,100 units, valued at US$2.21 billion, thus paving the way towards the Korean government’s ambitious objective of amassing US$80 billion from automotive exports this year.
A standout highlight of these figures involves the shipment of eco-friendly cars, which encompasses electric, plug-in hybrid, hybrid, and hydrogen vehicles. This category saw a dramatic upswing of 70.4%, reaching US$12.4 billion within the initial six months of the year. Out of every four Korean vehicles shipped abroad, one is an eco-friendly model, with 384,600 such units exported. Electric vehicles made a significant contribution, making up almost half (47.4 percent) of these eco-friendly vehicle exports, totaling 182,000 units.
This export explosion correlates with a notable domestic production increase of 23.5% year-on-year to 2,197,600 units, a threshold not achieved since 2019. This upswing results from the normalization of essential supplies, notably automotive semiconductors.
A geographical breakdown reveals North America as the leading importer in June, bringing in Korean vehicles worth US$444 million, marking a 20.4% annual increase. Both the EU, with US$261 million (up 31.4 percent), and the rest of Europe, with US$358 million (up 22.8 percent), also demonstrated significant growth. Contrarily, Asia experienced a minor decrease in Korean car imports, with exports down 2.8% year on year, standing at US$39 million.
Worldwide, Korean auto parts exports exhibited consistent growth, with robust imports observed in North America (US$721 million), EU (US$369 million), and Asia (US$473 million).
On home turf, car sales climbed by 10.7% to 893,700 units during the first half of the year, driven by recovery from the 2022 automotive semiconductor crisis. While the sales of vehicles produced within the country rose by 8.7%, those of imported vehicles experienced a drop of 3.1%.
Reflecting the global green shift, sales of Korean eco-friendly vehicles accounted for three out of every 10 new vehicles sold, amounting to 264,200 units within the first six months of the year. Notably, hybrids dominated the eco-friendly car market, claiming a 66.9% share with 176,990 units sold.
To sum up, 2023 has seen Korean auto exports and production racing ahead, with a clear emphasis on eco-friendly vehicles, thereby setting a positive course for the remainder of the year.
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