By: Salma Al-Saqqa
The eco-friendly vehicle sector in South Korea has recorded remarkable growth, supported by continued global demand for low-emission models and high fuel prices, despite the numerous challenges and pressures facing the automotive industry in international markets recently.
Growth of eco-friendly exports
Official data showed that the value of eco-friendly vehicle exports, which include electric and hybrid vehicles, increased by 5.9% year-on-year to reach $2.89 billion during the month. This positive performance contributed to easing the pressures that total vehicle exports were subjected to as a result of geopolitical tensions in the Middle East and a decline in used car shipments due to the tightening of regulatory rules.
Varied performance in global markets
The total value of South Korean vehicle exports witnessed a slight decline of 5.5% to record $6.05 billion compared to the previous year. At the destination level, exports to North America and the European Union recorded significant growth of 9.2% and 15.3% respectively, while shipments to Asia and the Middle East declined, reflecting a clear disparity in the performance of external markets and the ability of Western markets to support demand.
Domestic production and market challenges
Regarding domestic production, the number of manufactured vehicles increased by 3.7% to reach 347,000 units, supported by improved productivity and stable labor relations, while temporary domestic sales fell, affected by a decrease in actual working days during traditional holidays. The concerned authorities continue their efforts to support the automotive industry, enhance the ability of local companies to face intense competition, and expand the scope of reliance on low-emission vehicles.
