Exports to the US Increase by 30%, Accounting for Half
Hybrid SUVs Continue to be Promoted
Automobile exports through June of this year have reached a record high of over $37 billion, with exports to the United States, the world’s largest market, accounting for half of the total, up nearly 30 percent from a year ago. According to the Ministry of Trade, Industry, and Energy and the Korea International Trade Association on the 7th, Korea’s automobile exports in the first half of this year (January to June) were provisionally tallied at $37.01 billion (approximately 51.2 trillion won). This represents a 3.8% increase from the same period a year ago and is the highest ever for the first half of the year. Following the record high achieved in the first half of last year, which marked the highest in nine years, automobile exports have broken the record for the highest exports ever once more in just one year. Automobile exports have continued to increase year-on-year for four consecutive years since 2021 based on the first half of the year. An official from the Ministry of Trade, Industry, and Energy explained, “Exports of eco-friendly vehicles like electric and hybrid cars, and high value-added vehicles such as sport utility vehicles (SUVs), continued steadily, centered on the largest market, North America, and achieved the best performance ever in the first half of the year.”
By region, the export of automobiles to the US was $18.45 billion. This is a 29.8% increase from the first half of last year, accounting for 49.9% of total automobile exports. The share of exports to the US in total automobile exports increased by 8.5 percentage points from last year (41.4%). Automobiles also accounted for 28.7% of total exports to the US in the first half of this year, the largest single item. Conversely, exports to the EU decreased by 30.0%, and exports to the Middle East and Central and South America decreased by 18.7% and 8.3%, respectively.
Meanwhile, Hyundai Motor Company recorded its highest sales in the first half of this year in the Indian market. According to the Automobile Dealers Association of India (FADA) on this day, Hyundai Motor Company sold 272,207 passenger vehicles (PV) in the Indian retail market in the first half of this year. This is the highest sales volume of Hyundai Motor Company in the first half of its history as compiled by FADA.
Sejong = Reporter Lee Ho number2@donga.com
Reporter Han Jae-hee hee@donga.com
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Exports to the US Increase by 30%, Accounting for Half
Hybrid SUVs Continue to be Promoted
Automobile exports through June this year have reached a record high of over $37 billion, with exports to the United States, the world’s largest market, accounting for half of the total, up nearly 30 percent from a year ago.
According to the Ministry of Trade, Industry and Energy and the Korea International Trade Association on the 7th, Korea’s automobile exports in the first half of this year (January to June) were provisionally tallied at 37.01 billion dollars (approximately 51.2 trillion won). This is a 3.8% increase from the same period a year ago, and is the largest ever for the first half of the year. Following the record high in nine years in the first half of last year, it broke the record for the highest exports ever once more in just one year. Automobile exports have continued to increase year-on-year for four consecutive years since 2021 based on the first half of the year. An official from the Ministry of Trade, Industry and Energy explained, “Exports of eco-friendly cars such as electric and hybrid cars and high value-added vehicles such as sports utility vehicles (SUVs) continued steadily, centered on the largest market, North America, and achieved the best performance ever in the first half of the year.”
By region, the export of automobiles to the US was $18.45 billion. This is a 29.8% increase from the first half of last year, accounting for 49.9% of total automobile exports. The share of exports to the US in total automobile exports increased by 8.5 percentage points from last year (41.4%). Automobiles also accounted for 28.7% of total exports to the US in the first half of this year, the largest single item. On the other hand, exports to the EU decreased by 30.0%, and exports to the Middle East and Central and South America decreased by 18.7% and 8.3%, respectively.
Factors Driving Growth in US Automotive Exports
Several key factors have contributed to the surge in South Korean automotive exports to the US:
* **Strong Demand for SUVs and Hybrid Vehicles:** The US market has witnessed a significant shift towards SUVs and hybrid vehicles, driven by increasing fuel efficiency concerns and consumer preferences for larger, more versatile vehicles. South Korean automakers have positioned themselves effectively in this segment, offering a wide range of popular models.
* **Technological Advancements:** South Korean car manufacturers are known for their technological innovation, particularly in areas such as advanced safety features, infotainment systems, and electric vehicle technology. These advancements have made their cars highly competitive in the US market.
* **Favorable Trade Agreements:** The US-Korea Free Trade Agreement (KORUS FTA) has eliminated tariffs on a wide range of goods, including automobiles, making South Korean cars more affordable for US consumers.
Hyundai Motor’s Success in India
Meanwhile, Hyundai Motor Company has set a new record for its highest sales in the first half of this year in the Indian market.
According to the Automobile Dealers Association of India (FADA) on this day, Hyundai Motor Company sold 272,207 passenger vehicles (PV) in the Indian retail market in the first half of this year. This is the highest sales volume of Hyundai Motor Company in the first half of its history as compiled by FADA.
Key Takeaways:
* South Korea’s automobile exports in the first half of 2023 have reached record highs, with exports to the US experiencing the most significant growth.
* The strong demand for SUVs and hybrid vehicles in the US has fueled this surge.
* South Korean car manufacturers have successfully catered to these demands with their technologically advanced offerings.
* Hyundai Motor Company has observed remarkable success in the Indian market, demonstrating its global reach and strong brand presence.
Sejong = Reporter Lee Ho number2@donga.com
Reporter Han Jae-hee hee@donga.com
-
great
0dog -
I’m so sad
0dog -
I’m angry
0dog -
I recommend it
dog
