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

South Korean auto exports plummeted by 29.8% in August compared to the previous year, according to data released by the Ministry of Trade, Industry and Resources on Thursday. The decline was primarily attributed to a reduction in working days due to summer holidays and production slowdowns resulting from strikes at various car manufacturers.

The total value of automobile shipments dropped significantly from $5.49 billion in August 2022 to $3.85 billion in August 2023. This downward trend was particularly pronounced in exports to North America and the European Union, which fell by 28.2% and 16.8% respectively, reaching $1.84 billion and $659 million respectively. Exports to Asia and the Middle East also suffered a substantial drop of 41.9% and 23.6%, totaling $343 million and $234 million respectively.

The number of vehicles exported decreased by 26.9% to 146,000 units, while domestic sales of vehicles also decreased by 20.8% to 110,000 units. The number of locally produced vehicles fell by 35.8% to 206,000. Notably, six out of every ten vehicles sold in the domestic market were eco-friendly models, including electric and hybrid vehicles.

The ministry anticipates a recovery in vehicle exports and production later in the year, as major carmakers have recently reached wage agreements.