South Korea: Automobile production, domestic sales decline y-o-y in Sep'23

South Korea's auto industry showed a slight decline in production and domestic sales y-o-y in September, 2023 compared to the previous year, but exports continued to grow, reaching an all-time high for the third quarter.

Automobile production decreased by 1.9% y-o-y to 301,799 units in September, 2023. Moreover, it registered a fall of 3.3% m-o-m from 311,957 units in August,2023, as per the Korea Automobile Mobility Industry Association. This is likely due to partial strikes that occurred during wage and collective negotiations at major automakers and parts suppliers.

However, overall domestic production remains strong, with the industry maintaining output above 300,000 units per month for 13 consecutive months. If the current trend continues, annual production is expected to exceed 4 million units for the first time since 2018.

Meanwhile, cumulative automobile production in January-September, 2023 stood at 3,164,424 units, up 17.4% from the same period last year.

Sales edge down y-o-y

South Korea's total automobile sales edged down by 1.2% y-o-y to 331,479 units. However, the same remained largely stable m-o-m in September, 2023. For January-September, 2023, sales were tallied at 3,344,177 units, up 16.1% y-o-y.

Sales in the domestic market marginally declined by 4.7% y-o-y to 133,709 units in September, 2023. However, the same increased by 2.3% m-o-m against 130,667 units in August, 2023. Hybrid car sales jumped 46%, but electric car sales plunged 34%. It is believed that electric car buyers delayed their purchases in anticipation of the electric car subsidy increase on 25 September. Electric car sales are expected to rebound in the fourth quarter.

Total domestic sales from January-September, 2023 stood at 1,294,179 units, up 5.8% y-o-y.

Exports up y-o-y

Auto export volumes went up by 1.3% y-o-y to 197,770 units in September, 2023. This was driven by strong sales of domestically produced cars in the North American and European markets. By the third quarter, automobile exports had reached an all-time high of $52.1 billion. However, auto exports edged down by 1.3% m-o-m against August, 2023.

Total exports in January-September, 2023 stood at 2,049,998 units, up 23.7% y-o-y.

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