South Korea automobile exports fall 5.5% in September

South Korea’s automobile exports decreased by 5.5 percent in September compared to the previous year, falling to US$6.05 billion from US$6.4 billion. According to the Ministry of Trade, Industry and Resources, the decline was driven by escalating tensions in the Middle East and a reduction in used-car shipments resulting from stricter regulations in key export markets.

Regional performance showed significant variance. While exports to North America and the European Union grew by 9.2 percent and 15.3 percent respectively, shipments to Asia and the Middle East saw sharp declines of 60 percent and 7.1 percent. Despite these challenges, exports of eco-friendly vehicles, including gasoline hybrids and battery electric models, rose by 5.9 percent to US$2.89 billion.

Domestically, vehicle sales dropped 14.3 percent to 135,000 units, a decline attributed to fewer working days during the Chuseok holiday. However, local production increased by 3.7 percent to 347,000 units as productivity improved following wage agreements with labor unions. The South Korean government has pledged to support the industry's sustainable growth to counter intensifying competition from Chinese automakers.