South Korea: Auto exports hit record high in May'24

South Korea's automobile exports achieved a record high for the month of May in 2024, reaching USD 6.5 billion (KRW 9.0285 trillion) according to the Ministry of Trade, Industry and Energy. This represents a 4.8% y-o-y increase compared to May 2023.

Year-to-date figures for January through May 2024 also reached a new peak, with exports totaling USD 30.8 billion (KRW 42.776 trillion), reflecting a 4.7% y-o-y growth over the same period in the previous year.

North America remained the leading export market, accounting for USD 4 billion (KRW 5.557 trillion) in sales. This segment witnessed a significant 36% y-o-y increase compared to May 2023 and played a key role in driving overall growth. In contrast, exports to Europe experienced a slight decline due to the expansion of local production facilities in the Czech Republic and Slovakia.

Australia and Oceania saw a positive trend, with sales rising approximately 7% y-o-y. This growth is attributed to the successful launch of new car models like the Santa Fe and Carnival Hybrid in the Australian market.

Despite a minor 2.4% y-o-y dip in domestic automobile production compared to May 2023 (372,810 units), the industry maintains a solid performance driven by robust global demand. The full operation of Gwangmyeong Factory 2 and the introduction of new electric vehicles like the EV3 in the second half of 2024 are expected to further strengthen the sector.

Domestic sales of automobiles experienced a 7% y-o-y decline in May 2024 compared to the previous year, reaching 141,313 units. However, sales of eco-friendly vehicles showed positive growth, with approximately 50,000 units sold, representing a 10% y-o-y increase. Hybrid vehicle sales rose by 19% y-o-y to 38,000 units, while electric vehicle sales reached 13,000 units, reflecting a modest 3% y-o-y decrease.

The Ministry of Trade, Industry and Energy remains committed to its target of exporting USD 100 billion (KRW 138.937 trillion ) worth of automobiles and automobile parts in 2024. To address the recent surge in maritime freight costs, proactive measures are being implemented, including the early disbursement of export vouchers and the deployment of temporary vessels. Furthermore, the government is strengthening support for the industry through the 'Future Automotive Parts Industry Act' scheduled to be implemented in July 2024.

Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.