South Korea's automobile production rises nearly 10% y-o-y in Jul'23

South Korea's automobile industry performance in July stayed on track with positive growth in production compared to the same period of last year. However, domestic sales were found to have declined y-o-y.

The number of automobiles produced by six major domestic automakers (Hyundai Motor, Kia, GM Korea, Ssangyong Motor, Renault Korea, and Tata Daewoo) increased by 8.8 % or 28,666 units y-o-y to 3,52,972 in July 2023. However, it registered a fall of 4.7% or 17,321 units m-o-m from 3,70,293 units in June 2023, as per the Korea Automobile Mobility Industry Association.

Meanwhile, cumulative automobile production in January-July 2023 stood at 25,50,668 units, up 21% from the same period last year.

Sales marginally down in July

South Korea's total automobile sales were marginally down by 0.2% or 882 units y-o-y. Moreover, it fell by 9.8% or 39,558 units m-o-m to 3,65,065 units in July 2023. For January-July 2023 sales were tallied at 26,80,222 units, up 19% y-o-y.

Sales in the domestic market fell by 5%- or 26,610 units y-o-y and 16.4% or 7,204 units m-o-m to 1,36,089 units in July 2023.

The industry attributed the decline in domestic sales to three factors: the end of the opening tax cut policy in July, the decrease in the new car effect of the three mid-size companies, and the contraction of consumer sentiment for the purchase of new cars scheduled to be released in the second half of the year.

Total domestic sales from January-July2023 stood at 10,29,826 units, up 8.3% y-o-y.

Exports rise by 2.8% y-o-y

Auto export volumes rose by 2.8% or 6,322 units y-o-y, but decreased by 4.7% or 11,351 units m-o-m to 2,28,976 units in July 2023. This yearly growth can be attributed to the strong sales of domestic cars worldwide, particularly in North America and Europe. Most automobile brands experienced an increase in sales volume in the export sector, with the exception of Kia and Renault Korea.

Total exports in January-July 2023 stood at 16,50,396 units, up 27.4% y-o-y.

Note: This article has been written in accordance with an article exchange agreement between SteelDaily and SteelMint.