The Ministry of Trade, Industry and Energy (MOTIE) announced on November 15 that Korea’s accumulated automobile export value from January through October nears USD 58 billion, already surpassing the annual export value of last year ($54.1 billion), a previous all-time high, and also exceeding the $57 billion that was set (announced May 23) as this year’s total automobile export target.

The monthly automobile export value has been on a growth streak for 16 consecutive months since July 2022, and the October monthly export value ($5.9 billion) is the highest ever for October monthly automobile exports.

As shipments of eco-friendly cars like electronic vehicles (EVs) and premium cars like sports utility vehicles (SUVs) increased, the export unit price is also rising, going from $20,000 per unit in 2021 to $23,000 per unit for this year (Jan-Oct).

Korea’s automobile production volume advanced 3.9 percent year-on-year for October with 341,019 units, and it is anticipated that this year’s total production volume will surpass 4 million units for the first time in five years by the end of 2023.

As for the domestic market, October saw 141,000 units sold (down 2.1 percent year-on-year). Domestic sales of hybrid cars showed notable growth of 79 percent, leading the eco-friendly vehicle market. Carmakers are providing up to a maximum of 17 percent discount during the Korea Sale Festa (until November 30), which is expected to help stabilize consumer prices and boost domestic car sales.

Meanwhile, Korean automakers are utilizing the domestic supply chain and free trade agreement (FTA) network for making active investments in production facilities, such as building new EV plants in areas like Ulsan and Hwaseong. MOTIE has announced plans in July to establish a stable supply chain through the designation of a specialized industrial complex for manufacturing MPEs (materials, parts, equipment) like EV motors (Daegu) and self-driving car parts (Gwangju), and fully support Korea’s automobile industry by proactively responding to trade issues regarding EVs and expanding the FTA network.