June 27, 2022

The South Korean Ministry of Trade, Industry and Energy reported the country’s exports of automobiles to fall in October over extended global supply shortage of automotive chips. This is the second consecutive month where the country logged such a loss.

According to the data compiled by the ministry, last month the outbound shipments of automobiles reached 159,520 units, down 18.1 percent from a year earlier.

• Exports in terms of value decreased 4.7 percent from a year earlier to US$3.83 billion.
• The country’s auto exports fell for the second month in a row marking an on-year fall.
• Car exports in the previous month fell 20.7 percent to end eight months of on-year growth.
• The data showed domestic production of cars in the reporting month to fall 21.6 percent last month to 263,723 units.
• While domestic sales also fell 21.4 percent to 125,296 units.
• The country’s exports of eco-friendly vehicles, in the reporting month reached a fresh record high.
• The country shipped overseas a total of 38,538 eco-friendly vehicles last month, the largest-ever figure, up 32.9 percent from a year ago, the data showed.
• In October, the value of eco-friendly cars shipped overseas also stood at a record high of $1.14 billion, up 41.8 percent from a year earlier.
• This is the second straight month that the export figures on EVs crossed the $1 billion mark.
• Auto shipments by destination was recorded mixed in October. Exports to North America fell 24.8 percent to $1.49 billion, while exports to the European Union rose 2.9 percent to $661 million and Eastern Europe rose 20.9 percent to $469 million.
• Exports in terms of company, saw Hyundai Motor Co. move down 6.8 percent, and its sister unit Kia Corp. to log a 18.9 percent decrease.
• However, exports by Renault Samsung Motors Corp. in the global market rose on strong sales of the XM3 SUV.

Lastly, the ministry mentioned that a supply crunch of semiconductors for automobiles was initially expected to be eased in the third quarter. However, the recovery has been delayed due to supply disruptions in South East Asian countries, including Malaysia.