Export of eco-friendly vehicles and SUV with high unit prices increased.
South Korea’s domestic automobile industry has diminished its decline since February, although both production and exports have decreased in terms of vehicle numbers.
In May, exports of both automobiles (1.9%) and auto parts (14.7%) increased YoY in terms of the amount due to export increase of eco-friendly cars and SUVs with high unit prices and export increase of auto parts to the US and China.
Only 354,595 cars were produced in May, 1.3% less annually, due to discontinued production of some models, decrease of domestic sales and exports of domestic cars. Sales of domestic cars decreased slightly but, due to increase of imported car sales, total domestic sales recorded 157,771 units, increased by 1.3% YoY.
During this period, automobile production was only 354,595 units, decreased by 1.3% YoY, due to overseas inventory adjustments, discontinued production of some models, and decrease of domestic sales and exports of domestic cars. The models that were discontinued in February were Cruze and Orlando.
Hyundai Motor’s production dropped by 4.3% YoY due to production adjustments caused by sluggish exports of some models despite the increase in domestic sales, mainly in SUVs (Santa Fe, Kona).
Kia Motor’s production increased by 7.0% YoY on the strength of the effect from new cars such as K3, K9, and Carnival (including partial changes). In case of GM Korea, production decreased by 14.4% YoY due to discontinued production of Gunsan Factory coupled with slump of domestic sales and exports.
Ssangyong’s production jumped by 9.4% YoY thanks to the domestic sales effect of the new car Rexton Sports(pickup) released early this year. On the other hand, Renault Samsung’s production fell by 4.9% YoY due to sluggish domestic demand and exports of SM6.
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This year, the International Green Car Korea will see participation by the UK’s Society of Motor Manufacturers and Traders (SMMT), along with its member companies as well as eco-friendly vehicles and parts makers such as KOMEL, an electric motor manufacturer from Poland, as well as the Flying Car Association, which will showcase manned drones, a future transportation, and the member companies; the Gwangju Aftermarket Auto Parts Council and member companies that manufacture and supply automobile parts to the market to provide performance enhancement and stability of auto parts; MPS Korea specializing in electric commercial vehicles; APRO that specializes in the production of automotive parts and lamps; Earthtech, a battery recycling company that recycles energy storage system (ESS) for waste batteries from electric vehicles; Protec EMS, an electric charger supplier; and AutoLine, which produces and distributes eco-friendly automobile products.
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