South Korea's automobile industry is demonstrating remarkable resilience in the face of global economic pressures, reporting record-breaking exports and strong domestic performance for the second consecutive month.
According to a report released by the Ministry of Trade, Industry and Energy, Tuesday, the sector's growth was driven by robust demand for eco-friendly vehicles and a successful pivot to new markets.
Auto exports reached a record $5.5 billion in August, marking an 8.6 percent increase from the same period last year and representing the highest value ever recorded for the month. The cumulative export value from January to August also hit a new high of $47.7 billion, underscoring the sustained strength of the industry.
While exports to North America saw a decline, the overall surge was led by strong demand from Europe, driven primarily by the sale of eco-friendly vehicles.
The report highlights the critical role of the eco-friendly vehicle segment in the export boom. Overseas shipments of these vehicles grew by 26.6 percent to 69,000 units, extending an eight-month streak of growth.
Electric vehicle (EV) exports were a key driver, soaring by 78.4 percent to 23,000 units. The EV3 model, in particular, was a top performer, leading sales across European markets.
The domestic market mirrored the export success, with sales increasing by 8.3 percent year-on-year to 139,000 units. Eco-friendly cars captured a significant share of the domestic market, accounting for more than half of all sales with a 36.1 percent increase to 70,000 units. EV sales alone jumped by 55.7 percent to 24,000 units, while hybrid, plug-in hybrid, and hydrogen fuel cell vehicles also experienced considerable growth.
The robust demand at home and abroad spurred an increase in production. Domestic auto production rose by 7.1 percent to 321,000 units, marking the highest August output since 2013.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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