Last month, South Korea's auto exports fell nearly 30%, accompanied by declines in production and domestic sales. The shift in summer vacation timing compared to last year reduced working days, and strikes at some companies disrupted production.
According to the Ministry of Trade, Industry and Energy's report on the '2026 August Automotive Industry Trends' released on September 17, the value of auto exports in August was $3.851 billion, a 29.8% decrease compared to the same month last year. The number of vehicles exported dropped to 146,499 units, down 26.9%.
Exports decreased across all regions. Exports to North America, the main market, fell to $1.835 billion, a 28.2% decline. Exports to the United States alone were $1.478 billion, down 29.5%. The European Union saw a 16.8% decrease, while exports to Asia dropped by 41.9%, the Middle East by 23.6%, and Latin America by 12.9%.
Although exports of eco-friendly vehicles also declined, the drop was less severe than that of overall auto exports. The number of eco-friendly vehicles exported was 58,126 units, down 16.4%, with export value at $1.722 billion, a 20.9% decrease. By vehicle type, hybrid car exports totaled 35,723 units, and electric vehicle exports were 21,404 units, reflecting decreases of 17.5% and 5.0%, respectively, from a year earlier.
Production volume fell to 206,064 units, a 35.8% decrease. The shift in the industry's summer vacation from late July last year to early August this year significantly reduced the average number of working days by four. Additionally, production disruptions due to strikes at some companies compounded the issue.
Domestic sales also saw a decline, totaling 109,920 units, down 20.8%. Sales of domestic cars fell by 28.5% to 78,881 units, while imports increased by 9.0% to 31,039 units. Sales of eco-friendly vehicles in the domestic market were 68,808 units, a 2.3% decrease. Hybrid sales dropped by 17.6% to 36,102 units, while electric vehicle sales rose by 27.6% to 31,060 units. Eco-friendly vehicles accounted for 62.6% of total domestic sales, maintaining a steady trend.
From January to August this year, cumulative auto export value reached $46.013 billion, a 3.5% decrease compared to the same period last year. Cumulative production was 2,668,941 units, down 2.9%, and domestic sales totaled 1,096,740 units, a 0.7% decline. During the same period, eco-friendly vehicle export value increased by 18.2% to $19.664 billion.
The Ministry stated, "With wage negotiations at major automakers concluded, we expect production and exports to gradually recover in the second half of the year as we make up for lost production. We will communicate with the industry and provide support to resolve on-site challenges."
* This article has been translated by AI.
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