Last month, automobile exports decreased by 5.5% compared to the previous year. While exports to North America and the European Union (EU) increased, sluggish used car exports due to the ongoing Middle East conflict and stricter regulations in major countries negatively impacted overall performance. Domestic automobile sales also saw a double-digit decline due to fewer business days during the Chuseok holiday.
According to the Ministry of Trade, Industry and Energy's 'Automotive Industry Trends for September 2026' released on the 19th, the total value of automobile exports last month was $6.052 billion, down 5.5% from the same month last year. The number of vehicles exported was 237,443, which represents a 4.1% increase from a year earlier. Although new car export volumes rose, the decline in used car exports affected the monetary performance.
Regionally, export results varied. Exports to North America, the largest market, reached $3.072 billion, a 9.2% increase from the same month last year. Exports to the U.S. alone amounted to $2.562 billion, up 7.8%. EU exports also rose to $1.105 billion, a 15.3% increase. Exports to Latin America and Oceania grew by 8.2% and 5.3%, respectively.
In contrast, exports to Asia plummeted by 60.0% to $329 million. Exports to the Middle East fell by 7.1% to $354 million, and other European regions saw a 41.7% decrease. The Ministry attributed these declines to worsened logistics and market conditions due to the Middle East conflict and reduced used car exports resulting from stricter regulations in major countries.
Exports of eco-friendly vehicles remained relatively strong. Last month, exports of electric and hybrid vehicles totaled $2.893 billion, a 5.9% increase from the previous year. Eco-friendly vehicles accounted for approximately 47.8% of total automobile exports.
Automobile exports had also seen a significant decline in August, with export values dropping to $3.850 billion, a 29.8% decrease from the previous year. This decline was primarily attributed to production disruptions caused by seasonal vacation shifts and strikes at some companies. Production volume fell by 35.8% to 206,000 units, while domestic sales dropped by 20.8% to 110,000 units.
Domestic automobile sales were also weak. In September, domestic sales totaled 135,396 units, a 14.3% decrease from the same month last year. Sales of domestic vehicles fell by 19.4% to 99,157 units, while imports increased by 3.9% to 36,239 units.
The Ministry analyzed that the shift of the Chuseok holiday from October last year to September this year resulted in an average of three fewer business days for the automotive industry, along with a slowdown in sales due to the depletion of electric vehicle purchase subsidies and waiting demand for new cars. However, domestic sales of eco-friendly vehicles accounted for about 59% of total sales, with approximately 80,000 units sold.
Automobile production increased by 3.7% year-on-year to 346,618 units. This increase reflects the recovery of production volumes lost due to wage negotiations at major automakers and the base effect from strikes in the previous year.
The Ministry stated, "Global competition is intensifying due to the expansion of Chinese automakers into overseas markets," and added, "We plan to actively support the continuous growth of the automotive industry through close communication with the industry."
* This article has been translated by AI.
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