Last month, South Korea's automobile exports exceeded $6.24 billion, marking the highest figure ever recorded for July. Exports of eco-friendly vehicles, including electric, hydrogen, and hybrid cars, surged by over 20%, significantly boosting overall performance.
The Ministry of Trade, Industry and Energy announced on August 13 that it held a meeting with the Korea Automobile Mobility Industry Association to discuss trends in the automotive sector for July, outlook for the second half of the year, and the transition to future vehicles.
In July, automobile exports totaled $6.24 billion, a 7.0% increase compared to the same month last year. This figure surpassed the previous record of $5.9 billion set in July 2023.
Eco-friendly vehicles led the export growth, with exports amounting to $2.59 billion, a 25.5% increase from the same month last year. Exports of electric and hydrogen vehicles rose by 31.9% to $940 million, while hybrid vehicle exports increased by 22.2% to $1.65 billion. In contrast, exports of internal combustion engine vehicles fell by 3.1% to $3.65 billion.
Regionally, exports to North America rose by 18.0% to $3.25 billion, while exports to the European Union increased by 23.5% to $880 million. Exports to the Middle East also grew by 12.7% to $430 million, marking an increase for the first time in eight months.
The ministry attributed the export growth to an increase in working days due to major automakers shifting their summer vacation from July last year to August this year, along with sustained global demand for eco-friendly vehicles and sports utility vehicles (SUVs).
Domestic sales and production also saw increases. Last month, domestic automobile sales reached 139,000 units, a 0.5% rise compared to the same month last year. Among these, eco-friendly vehicles accounted for about 60% of total domestic sales, with 84,000 units sold. Electric vehicle sales surged by 47.5% to 36,000 units.
Automobile production reached 352,000 units, an 11.3% increase from the same month last year, influenced by the increase in working days due to the shift in summer vacation.
During the meeting, representatives from the automotive industry emphasized the need for stable domestic production capacity of over 4 million units annually to maintain the domestic automotive ecosystem amid intensified global competition in electric vehicles from foreign companies, including those in China. They called for government policy support.
Participants also agreed on the necessity to transition the parts industry towards future vehicles in line with industrial structural changes, and to build an ecosystem where both automakers and parts manufacturers can grow together.
Park Dong-il, head of the Ministry's Industrial Policy Office, stated, "As the global automotive industry is undergoing a significant transformation due to the transition to future vehicles, it is crucial for the government, automakers, and parts manufacturers to unite as one team to overcome challenges together. We will closely support the current issues regarding production and export conditions."
The Ministry of Trade, Industry and Energy announced on August 13 that it held a meeting with the Korea Automobile Mobility Industry Association to discuss trends in the automotive sector for July, outlook for the second half of the year, and the transition to future vehicles.
In July, automobile exports totaled $6.24 billion, a 7.0% increase compared to the same month last year. This figure surpassed the previous record of $5.9 billion set in July 2023.
Eco-friendly vehicles led the export growth, with exports amounting to $2.59 billion, a 25.5% increase from the same month last year. Exports of electric and hydrogen vehicles rose by 31.9% to $940 million, while hybrid vehicle exports increased by 22.2% to $1.65 billion. In contrast, exports of internal combustion engine vehicles fell by 3.1% to $3.65 billion.
Regionally, exports to North America rose by 18.0% to $3.25 billion, while exports to the European Union increased by 23.5% to $880 million. Exports to the Middle East also grew by 12.7% to $430 million, marking an increase for the first time in eight months.
The ministry attributed the export growth to an increase in working days due to major automakers shifting their summer vacation from July last year to August this year, along with sustained global demand for eco-friendly vehicles and sports utility vehicles (SUVs).
Domestic sales and production also saw increases. Last month, domestic automobile sales reached 139,000 units, a 0.5% rise compared to the same month last year. Among these, eco-friendly vehicles accounted for about 60% of total domestic sales, with 84,000 units sold. Electric vehicle sales surged by 47.5% to 36,000 units.
Automobile production reached 352,000 units, an 11.3% increase from the same month last year, influenced by the increase in working days due to the shift in summer vacation.
During the meeting, representatives from the automotive industry emphasized the need for stable domestic production capacity of over 4 million units annually to maintain the domestic automotive ecosystem amid intensified global competition in electric vehicles from foreign companies, including those in China. They called for government policy support.
Participants also agreed on the necessity to transition the parts industry towards future vehicles in line with industrial structural changes, and to build an ecosystem where both automakers and parts manufacturers can grow together.
Park Dong-il, head of the Ministry's Industrial Policy Office, stated, "As the global automotive industry is undergoing a significant transformation due to the transition to future vehicles, it is crucial for the government, automakers, and parts manufacturers to unite as one team to overcome challenges together. We will closely support the current issues regarding production and export conditions."
* This article has been translated by AI.
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