Auto exports drop 29.8% in Aug. on fewer working days, strikes

Korea's automobile exports witnessed a steep 29.8% decline in August compared to the same period last year, according to data released by the Ministry of Trade, Industry and Resources. The slump was primarily attributed to fewer working days due to summer holidays and production setbacks resulting from strikes at various automobile manufacturers. The total value of exported vehicles plummeted to $3.85 billion in August, down significantly from $5.49 billion a year prior.

The impact of the decline was felt acutely in key markets. Exports to North America and the European Union contracted by 28.2% and 16.8% respectively, totaling $1.84 billion and $659 million. Meanwhile, shipments to Asia and the Middle East dropped by 41.9% and 23.6% respectively, amounting to $343 million and $234 million. The overall number of vehicles exported also saw a decline of 26.9% year-on-year, reaching 146,000 units.

Domestically, the situation mirrored the global trends. Vehicle sales at home fell by 20.8% to 110,000 units, a drop of 20.8% compared to the previous year. The number of locally manufactured vehicles declined sharply by 35.8% to 206,000. Interestingly, six out of every ten vehicles sold in the domestic market were electric cars.