South Korea’s automobile exports reached a record high of US$70.9 billion in 2023.
According to the 2023 annual automobile industry statistics released by the Ministry of Trade, Industry and Energy on January 16, South Korea’s automobile export value last year increased by 31.1% from the previous year to $70.9 billion, which was the highest ever.541 It exceeded 100 million dollars. It is set in 2022.
This is mainly due to the Korean auto industry’s strategy to expand exports of expensive eco-friendly vehicles in line with the global auto market’s eco-friendly and electrified trends. The total export value of environmentally friendly vehicles last year was approximately $24.2 billion, an increase of 51% from 2022.
The unit price of exported cars also reached about $23,000 for the first time. The previous record was US$21,000, set in 2022.
In December 2023, automobile exports reached USD 6.4 billion, marking the 18th consecutive month of year-on-year growth. Automobile exports have remained above $6 billion since November.
South Korea’s automobile production increased by 13% from the previous year to 4.24 million units due to the normalization of the supply of automotive semiconductors and other parts, and annual production recovered to 4 million units for the first time in five years since 4.03 million units in 2018. did. Among domestic factory models, 1st place is Avante (270,000 units), 2nd place is Kona (250,000 units), 3rd place is Trailblazer (220,000 units), 4th place is Trex (210,000 units), and Sportage (210,000 units). It became. ) ranked fifth, and Tucson (190,000 units) ranked sixth. In particular, the increase in automobile exports to meet the global pent-up demand caused by the new coronavirus infection drove the increase in production, with approximately 65% (2.77 million units) of domestically produced automobiles being exported to overseas markets.
Domestic sales rose 3% year-on-year to 1.74 million units, marking the first increase in three years since 2020’s 1.89 million units. In the domestic eco-friendly vehicle market, hybrid vehicles increased by 45% compared to the previous year. Effects of new cars such as the Grandeur Hybrid.
“There were great concerns that South Korea’s exports of eco-friendly vehicles would decline due to the implementation of the IRA, but through ongoing discussions with the US, we have decided to receive a subsidy of more than 20 million yen for commercial eco-vehicle rental and leasing services. “From January 2023, it will be raised to $7,500,” an official from the Ministry of Trade, Industry and Energy said. “Korea’s automobile industry has also aggressively expanded sales of commercial vehicles, and exports of environmentally friendly vehicles to the United States under the IRA increased by 70% compared to the previous year.”