On Monday, South Korea reported an increase in automobile exports with a $17.099 billion worth of value in the first quarter (Q1) of 2023. The growth rate for this quarter was around 44.1 percent more than the previous quarter’s growth.
According to the South Korean Ministry of Trade, Industry and Energy, last month was similarly fortunate for the automobile sector’s expansion. In March, South Korea recorded $6.518 billion worth of exports, exports that are 64.1 percent further than the last year.
One of the main factors that have led to exponential automobile export enlargement is the vigorous nature of Korea’s electric vehicle (EV) and hydrogen vehicle sectors. Big Korean corporates line Hyundai Motor Company have been working on advanced electric fleet development, giving a boost to exports.
South Korea has a good grip over EVs in the Asian region. Due to continuous government backing, technological progress, as well as an influential supply chain and availability of workforce, the country has been able to meet the rising consumer demand.
The newly released data tells that Korean automobile makers like Hyundai saw a 31.6 percent increase in their car sales overseas. Similarly, businesses like Kia, GM Korea, Renault Korea, and KG Mobility, got about 50 percent, 85 percent, 118 percent, and 35 percent hikes in sales respectively.
In March, the demand for eco-friendly vehicles soured. An increase in automobile shipment was observed by the Ministry of Trade, Industry and Energy where compared to last year, there was a roughly 65 percent spike. About $6.52 billion worth of exports was estimated in March, an estimate even higher than February’s $5.6 billion.
The market for automobiles has shifted a ton in the recent two to three years. By the rear of the pandemic, a global directive for eco-friendly vehicles is being placed in car markets. Requirements for diesel and petrol engine automobiles have shrunk by a large rate although these vehicles still hold a great amount of dominance in the global market to this date. It is anticipated that eco-friendly vehicles can surpass them in future.
The data ascertained by the Ministry of Trade, Industry and Energy pointed out that last month, March’s export volume of 262,341 cars was the highest ever since December 2016. It was 48 percent better when compared with the previous year’s same data. Among these exports, the majority portion was led by green cars with a volume of 70,000.
On a year-on-year basis, the domestic production of automobiles in South Korea has increased by 35 percent i.e. 409,806 units in the last month. The presence of a stable semiconductor industry and battery producers has also made this increase possible.
The Chinese automobile or EV makers have been giving cutthroat competition to South Korean car manufacturers globally. The competition can get even more tensed with the threshold in American and European EV policies as both countries need to look out for themselves.