Auto exports fall 5.5 pct in Sept. amid Mideast tensions

South Korea's automobile exports declined by 5.5% in September compared to the previous year, according to government data released on Monday. The value of exports dropped to $6.05 billion from $6.4 billion a year earlier. This decline can be attributed to ongoing tensions in the Middle East and a drop in used-car shipments due to stricter regulations in key export markets.

Despite the overall decrease, exports to North America and the European Union saw a rise of 9.2% and 15.3%, respectively, reaching $3.07 billion and $1.11 billion. However, shipments to Asia and the Middle East plummeted by 60% and 7.1%, respectively, amounting to $330 million and $350 million. Eco-friendly vehicles, including battery electric and gasoline hybrid models, experienced a 5.9% increase, totaling $2.89 billion.

Domestic vehicle sales also saw a decline of 14.3% to 135,000 units last month, primarily due to fewer working days caused by the Chuseok holiday. On the positive side, the number of locally produced vehicles rose by 3.7% to 347,000 as productivity improved at major automakers following wage agreements with labor unions. The government pledged to support the automobile industry's sustainable growth through close collaboration with the sector, acknowledging the intensifying competition from Chinese automakers.