Korea's auto exports hit new high in March amid overall trade deficits

As Korea suffers from constant trade deficits in numerous sectors, its auto exports hit a fresh new high again in March driven by the trusty sales of electric vehicles.

President Yoon Suk Yeol is escorted by Hyundai Motor Group Executive Chair Euisun Chung during his visit to Hyundai's manufacturing plant in Ulsan on March 9. [YONHAP]

As Korea suffers from constant trade deficits in numerous sectors, its auto exports hit a fresh new high again in March driven by the trusty sales of electric vehicles.

Korea's auto export revenue was $6.52 billion in March, a new high and up 64.1 percent on year, according to the Ministry of Trade, Industry and Energy on Monday.

In terms of volume, its exports jumped 48 percent on year to 262,341, the highest in six years and three months.

The record-high figures came as Korea's exports fell for the sixth consecutive month in March due mainly to weak global demand for semiconductors, with the country suffering a trade deficit for 13 months in a row.

The revenue of chip exports fell eight consecutive months to $8.8 billion last month, down 33.8 percent on year.

Exports of eco-friendly cars hit a record in terms of both revenue and volume. The revenue soared 94.7 percent to $2.27 billion, with volume surging 79.5 percent to 71,781.

This is the first time the monthly volume exceeded 70,000.

Exports of fully electric vehicles were up 109.7 percent on year to 34,379, while exports of hybrids rose 60.4 percent to 31,262.

A total of 29 hydrogen-powered vehicles were sold overseas last month.

By brand, Kia's exports increased by 49.1 percent, while Hyundai Motor rose by 31.6 percent.

Renault Korea Motors saw a 118.4 percent year-on-year increase in exports in March, while GM Korea rose 85.6 percent. KG Mobility, previously known as SsangYong Motor, saw a 35 percent on-year increase.

Exports to the U.S. market also hit a new high of some 14,000 in March despite the Inflation Reduction Act (IRA), which does not offer any subsidy to Hyundai and Kia electric vehicles.

"The increase was available as the exports of eco-friendly commercial vehicles accounted for 28 percent in the first quarter from 5 percent in 2022," the Trade Ministry wrote in the report.

Commercial vehicles are eligible for up to a $7,500 subsidy under IRA even though they are not assembled in the North American region.

Production volume also increased 35.6 percent to 409,806 in March. It's the first time in six years for the monthly auto production to pass 400,000.

Hyundai's production rose 33.6 percent due to the popularity of newly introduced vehicles like Grandeur and Kona, while Kia was up by 34.1 percent.

During the same period, imported brands sold fewer cars in Korea. Sales fell 9 percent to 25,103 amid the sluggish sales of internal combustion engines from popular brands like Mercedes-Benz and BMW.

BY SARAH CHEA [chea.sarah@joongang.co.kr]