Intro: Despite the export slowdown, eco-friendly vehicles recorded strong growth
Seoul
South Korea’s automobile exports declined 5.5% year-on-year in April, reaching $6.17 billion, as shipments to the Middle East dropped sharply due to the ongoing United States-Iran conflict.
Government data released Wednesday showed exports to the region plunged 38.7%, while shipments to Asia and the European Union also fell significantly.
Despite the export slowdown, eco-friendly vehicles recorded strong growth. Exports of electric, hydrogen and hybrid vehicles climbed 13.5 percent to $2.52 billion, driven by rising global demand for greener transportation. Electric and hydrogen vehicle exports rose 23.1 percent, while hybrid vehicle exports surged 40.2 percent.
Domestic automobile sales in South Korea edged up 0.7 percent to 152,000 units in April. Eco-friendly vehicles accounted for nearly 60 percent of all domestic sales, increasing 31 percent from a year earlier. Electric vehicle sales more than doubled, soaring 139.7% to 38,927 units, supported by higher oil prices linked to the Middle East conflict and new vehicle rotation policies.
U.S. electric vehicle maker Tesla posted an 811.5% surge in sales in South Korea, while Chinese automaker BYD recorded a 272.6% increase. However, overall automobile production in the country fell 6.1% due to supply chain disruptions and consumers delaying purchases ahead of new model launches.
Hyundai Motor and Renault Korea reported production declines, while Kia, GM Korea and KG Mobility achieved modest gains. The trade ministry said supply chain conditions are expected to stabilize beginning in June.