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Hyundai cars lined up for export at Ulsan Port

South Korea's automobile exports fell 5.5% last month to $6.17 billion, heavily impacted by factors such as the war in the Middle East.

According to the April automobile industry trends released by the Ministry of Trade, Industry and Energy on May 20, auto exports last month slipped 5.5% year-on-year to total $6.17 billion.

By region, exports to North America (+2.4%), Central and South America (+23.7%), and Oceania (+20.1%) increased. In contrast, the Middle East saw the sharpest decline, plunging 38.7%. Shipments to the EU and Asia also dropped by 13.1% and 31.7%, respectively.

Nevertheless, exports of eco-friendly vehicles, led by electric and hybrid cars, sustained their upward trajectory, rising 13.5% year-on-year to hit $2.52 billion.

In terms of volume, export sales reached 245,000 units. Domestic production fell 6.1% to 362,000 units. While output increased at GM Korea (+15.4%), KG Mobility (+8.6%), and Kia (+0.5%), production decreased at Hyundai Motor (-16.2%) and Renault Korea (-32.3%).

This decline is analyzed to stem from isolated component supply chain issues and pent-up demand ahead of the launch of new and facelifted models of major vehicle lines. However, production disruptions caused by supply chain bottlenecks are projected to normalize starting in June.

Meanwhile, domestic sales ticked up 0.7% to 152,000 units. Among domestic brands, Kia (+7.9%) posted sales growth, while sales of certain imported brands also expanded, particularly in the electric vehicle sector.

Notably, eco-friendly vehicles accounted for 91,000 units of total domestic sales, making up approximately 60% of the market and underscoring an accelerating shift toward eco-friendly cars across the auto industry.