South Korea: Automobile industry experiences m-o-m increase in Nov'23

South Korea's automobile industry reports m-o-m increase in domestic automobile production in November 2023 compared to the previous month.

Domestic production

According to the Korea Automotive Mobility Industry Association, domestic automobile production totalled 370,145 units in November 2023, marking a 2.5% decrease y-o-y from November 2022. Whereas, 8.5% m-o-m increased against the previous month.

Cumulative production

The cumulative production of automobiles for 11 moths reached 3.88 million units, exceeding the previous year's performance of 3.76 million units in the same period. Driven by domestic and international demand, production surged, reaching a five-year high of 400 units by year's end, and it is expected that production will exceed 10,000 units.

Surge in sales

Automobile sales in November 2023 rose by 8.7% y-o-y and 10.7% m-o-m reaching 406,151 units as compared to October 2023. Both domestic and export sales contributed to the surge. As of the previous year, domestic sales hiked by 2.9% y-o-y to 160,476 units, while exports were up by 12.9% y-o-y to 245,675 units.

The November Korea Sale Festa event is credited with boosting domestic sales and achieving price stability for the first time in five months.

Eco-friendly market

The eco-friendly car market saw a surge, with hybrid car sales leading the way with a 65% growth rate. Electric cars also recorded positive growth for the first time in five months since July 2023.
Earlier this year, eco-friendly car exports to the U.S. were a point of concern, but November witnessed a remarkable turnaround with a record-breaking 17,000 units shipped.

Export continues to rise

November saw a $6.53 billion export surge, marking the highest monthly total ever recorded. This surpasses the previous record set in March by a staggering $300 billion, the surge can be attributed in large part to the full-scale launch of high-end eco-friendly cars like the EV9, particularly in the key U.S. market.

Furthermore, the January-November period shattered the annual export record with a total of $64.5 billion, and projections indicate that 2023 will become the first year ever with automobile exports exceeding $70 billion.

Auto part act

Special Act on Future Auto Parts" on 8 August, the Ministry of Trade, Industry and Energy (MOTIE) is taking swift action to revitalize the Korean auto parts industry. A comprehensive revitalization plan is being developed in collaboration with other ministries and industry stakeholders, with the aim of ensuring a smooth implementation of the Act within six months.

Outlook

The Korean automobile industry is currently experiencing positive momentum, driven by factors like strong export sales, increasing demand for eco-friendly vehicles, and government initiatives. However, continued vigilance and adaptation will be crucial to navigate potential challenges and sustain this growth in the long run.