S. Korea’s car export hits all-time high in Q2 driven by green vehicle demand

[Photo by Han Joo-hyung]

South Korea’s car exports surged to an all-time high during the April-June period, reaching $16.62 billion to mark a 46 percent increase compared to a year earlier, driven by soaring demand for eco-friendly vehicles in North America and Europe.

According to data released by the Korea Customs Service on Monday, car exports (excluding second-hand cars) for the second quarter amounted to $16.62 billion, up 46.4 percent from the previous year’s corresponding period. Compared to the previous quarter, which recorded the highest-ever export figure for a single quarter with $15.41 billion, the Q2 exports were 7.9 percent higher.

The boost in car exports can be attributed to the recovery in demand from North America and the European Union, improvements in the supply of automotive semiconductors, and the expansion of eco-friendly vehicle demand.

Eco-friendly car exports reached $6.3 billion during the period, marking an astounding 70.7 percent increase from a year ago. Both export value and quantity (197,000 units) achieved record-breaking results.

Car imports during the same period experienced a substantial increase of 32.9 percent, totaling $4.58 billion, also setting a record for the largest import volume. The imports were primarily dominated by eco-friendly and large vehicles, with growth rates of 47.2 percent and 35.7 percent, respectively, compared to the previous year. The total number of imported vehicles during the six-month period increased by 11.9 percent to 90,000 units.

Both eco-friendly car exports and imports have achieved record levels, driving the overall passenger car trade, the Korea Customs Service said.