In July, automobile exports hit the $5 billion mark per month for the first time, breaking a new high in seven years and seven months.
Exports of eco-friendly vehicles surpassed 50,000 units for the first time, setting a record high in both export volume and value. Hybrid and electric vehicles also performed best.
According to the ‘Automobile Industry Trend for July 2022’ announced by the Ministry of Trade, Industry and Energy on the 15th, production increased by 9.1%, export volume by 23.1%, and export amount by 25.3% compared to the same month of the previous year, respectively. Domestic demand was tentatively estimated to have declined by 3.0%.
In July, in the automobile industry, production and exports of both finished vehicles increased as the supply-demand problem of parts eased somewhat amid continued global supply chain instability. The domestic sales of domestic cars were similar to last year, while the overall domestic demand decreased slightly due to a sharp decrease in imported cars.
Production recorded 324,668 units, an increase of 9.1% compared to the same month of the previous year due to partial easing of supply and demand shortages of automotive semiconductors and parts, exceeding 300,000 units for five consecutive months for the first time in three years since July 2019.
All automakers increased their production compared to the same month last year. In particular, the three mid-sized companies increased by double digits, contributing to the increase for the third consecutive month.
It is analyzed that the main reasons for the increase in production of the three mid-size companies are the improved parts supply and demand situation and the resumption of work in two shifts per week following the launch of Ssangyong Motor’s new car, the Torres.
Domestic cars were at the level of last year due to brisk sales of eco-friendly cars, but due to a sharp decline in imported cars, total domestic demand decreased by 3.0% compared to the same month of the previous year to 143,293 units.
Export volume increased by 23.1% from the same month of the previous year to 223,633 units, and the amount increased by 25.3% to USD 5.14 billion, both of which increased by double digits, exceeding the pre-COVID-19 level.
In particular, the amount reached the $5 billion level for the first time in history thanks to an increase in export volume and the best export performance of eco-friendly vehicles, breaking the highest level in seven years and seven months since December 2014.
By region, exports to emerging markets in addition to major automobile export regions such as North America and the EU also increased evenly, achieving the highest monthly performance in history.
Domestic demand for eco-friendly cars increased by 26.8% to 37,735 units from last year, and exports to 54,222 units, up 60.1% from the previous year, maintaining a strong trend in both domestic and export.
In the case of domestic sales, electric vehicles more than doubled compared to the same month of the previous year, breaking a record in sales.
Electric vehicles recorded the top three monthly sales results this year with various models, contributing to the increase in domestic sales of eco-friendly vehicles for the sixth consecutive month. The cumulative number of electric vehicles supplied in July also exceeded 300,000, accounting for 5.6% of the total number of registered vehicles.
Domestic eco-friendly cars sold 29,668 units, a 43.6% increase, and imported eco-friendly cars, 8067 units, down 11.3%, leading the domestic sales of eco-friendly cars.
Export volume also increased by 60.1% from the same month of the previous year to 54,222 units, and the amount increased by 50.6% to $1.47 billion, all recorded positive for 19 months in a row, renewing the highest level.
Among them, hybrid vehicles and electric vehicles increased to double digits, surpassing 50,000 units in monthly exports for the first time, accounting for 24.2% of total automobile exports. Both hybrid and electric vehicles achieved the best performance.
Exports in September last year surpassed the 1 billion dollar mark for the first time, and have exceeded the 1 billion dollar mark for 11 consecutive months, accounting for 28.6% of the total automobile exports.
In addition, exports of hybrid cars and electric and hydrogen cars were also reported to have reached record highs in three and seven months, respectively.
Inquiries: Automobile Division, Manufacturing Industry Policy Office, Ministry of Trade, Industry and Energy (044-203-4323)
