South Korea’s two major automakers, Hyundai Motors and Kia Motors, are selling well overseas of high-end models such as electric cars, and are expected to export more than 2 million cars in 2023 for the first time in seven years.
According to the Korea Automotive Mobility Association (KAMA), Hyundai and Kia, the world’s third-largest automakers, shipped 1.8 million cars from South Korea to other countries in the first 10 months of this year, up 17.5% from the same period last year. % increase. on sunday.
Hyundai’s exports rose 16.5% to 945,062 units, while overseas sales of its smaller affiliate Kia Motors rose 18.5% to 867,136 units.
A Hyundai Motor Group official said, “Exports have increased as a result of increasing domestic production to meet growing demand for environmentally friendly vehicles.”
Exports this year are expected to reach 2.2 million units, marking the first time the company has exceeded the 2 million mark since 2016, when it shipped 2 million units to other countries. Since then, Hyundai and Kia have increased overseas production in response to growing overseas demand.
Starting in the second half of 2022, Hyundai Motor Group has been supporting exports in Asia’s fourth-largest economy, which has been hit by a slump in the semiconductor sector. In the year to June 30, 2023, Hyundai Motor’s exports rose 29.6% to $31 billion, while Kia Motors’ overseas sales rose 30.7% to $23.5 billion. , according to the Korea International Trade Association.
Continued growth but at a slow pace
South Korea’s total automobile exports will increase by 27.2% to $69 billion in 2023, with sales volume increasing by 17.4% to 2.7 million, as strong demand for high-value-added models such as EVs and sports multi-purpose vehicles pushed up export values. It is expected that it will become a platform. KAMA separately stated this last week.
1-10, as aggressive fleet sales led to a 66.3% increase in clean vehicle sales to the U.S. despite Hyundai and Kia refusing to take advantage of U.S. tax incentives, according to a southern automaker association. EV exports in March increased by 77% year-on-year. South Korea includes Hyundai, Kia Motors, GM Korea Co., Renault Korea Motors Co., and KG Mobility Corp.
According to KAMA, the country’s automobile exports are expected to increase by 3.9% to $71.5 billion, and sales are expected to increase by 1.9% to 2.8 million units.
“Despite this year’s strong performance, exports are likely to lose momentum in 2024 due to slower economic growth in developed markets,” the report said. “However, demand is likely to normalize in key markets such as the US and Europe, and we expect consumer sentiment to improve with interest rate cuts in the second half of the year.”
Write destination Bae Sung-soo baebae@hankyung.com
Jung Jeong-woo edited this article.