S.Korea’s January-April car exports at record high of $23.2 bn

In an impressive surge, South Korea's automobile exports soared to an unprecedented high of $6.16 billion (8.2 trillion won) in April, marking a staggering 40.3% increase compared to the same month last year.

Although falling short of the previous month's record of $6.51 billion in March, this achievement represents the highest export value for the month of April in history. Furthermore, the cumulative export value from January to April this year reached an all-time high of $23.2 billion.

According to data released by the Ministry of Trade, Industry, and Energy on Tuesday, automobile production experienced a substantial upswing of 24.7%, reaching 382,000 units last month compared to the same period last year.

Domestic sales also followed a positive trajectory, with a 4.3% increase to reach 149,000 units, while exports witnessed significant growth of 25.3%, with 247,000 units shipped abroad. In terms of regional distribution based on export value, North America secured the top position with $2.99 billion, followed by the European Union with $1.07 billion, Asia with $521 million, other European countries with $480 million, and the Middle East with $476 million.

Leading automakers in the country also made substantial contributions to the impressive export performance. Hyundai Motor Co. and Kia Corp. witnessed remarkable growth, with their exports increasing by 18.0% and 33.2%, respectively, in April. Hyundai exported 103,169 units, while Kia shipped 95,398 units. GM Korea and KG Mobility also displayed strong export growth rates of 115.9% and 30.7%, respectively. However, Renault Korea experienced a decline of 56.8% during the same period.

The continuous success of eco-friendly vehicles played a pivotal role in driving the overall growth of automobile exports for the third consecutive month, surpassing the $2 billion mark. Notably, the export value of eco-friendly vehicles, particularly electric vehicles(EV), jumped by an impressive 55.8% to reach $2.05 billion. Although this falls short of the all-time high recorded in March at $2.27 billion, it still represents the second-highest export value ever attained.

The total export volume witnessed a substantial increase of 33.7% compared to the same month last year, reaching 63,824 units in April. Electric cars and plug-in hybrid electric vehicles (PHEV) performed exceptionally well, with 29,731 electric cars exported, representing a striking 100.4% increase, and 6,809 PHEVs shipped, showing a notable 67.0% increase.

On the other hand, hybrid vehicles experienced a slight decline of 5.4%, with 27,256 units exported, while hydrogen fuel cell vehicles saw a remarkable surge of 366.7% with 28 units exported.

Particularly noteworthy is the exceptional performance of EV, PHEV, and hydrogen fuel cell vehicles eligible for benefits under the US Inflation Reduction Act (IRA). In April 2022, these vehicles achieved a record-breaking export volume of 9,000 units, the highest since the IRA's implementation in August 2022, according to the Ministry of Trade, Industry, and Energy. 

"The Korean auto industry is proactively utilizing IRA benefits, as commercial vehicles enjoy IRA benefits (up to $7,500) regardless of North American assembly or battery requirements," said the ministry. " As a result, the share of commercial vehicles has significantly expanded from approximately 5% in the previous year to 35%."

Write to Han-Shin Park at phs@hankyung.com