Auto parts, EVs aid S Korean April auto output, exports

Spanish Market: Metals
17/05/23

South Korea's auto output and exports in April rose against a year earlier as supplies of auto parts normalised during the month and with firm growth in electric vehicle (EV) exports.

Auto production in April rose by around 25pc from the previous year but was down by 6.7pc against a month earlier to 382,265 units, according to the country's trade and industry ministry (Motie). The double-digit year-on-year rise in production was partly because of the normalisation of the supply of automobile parts such as semiconductors, Motie said.

Domestic auto manufacturer Hyundai raised output by 16pc from a year earlier to 169,384 units in April, with Kia's output up by 23pc to 147,319 units and GM Korea more than doubling to 41,659 units.

South Korea's January-April auto output totalled around 1.45mn units, up by 27pc from a year earlier. Hyundai's output accounted for the main share at 651,703 units, up by around 25pc from a year earlier, while Kia's output rose by also about 25pc to 567,967 units and GM Korea's output was up by 61pc to 127,884 units.

Domestic sales rose by 4.3pc from a year earlier but down by 9.9pc against the previous month to 149,374 units. Domestic sales totalled 578,848 units during January-April, up by 12pc from a year earlier.

Auto exports in April rose by around 25pc against a year earlier but down by 5.9pc from the previous month to 247,399 units. January-April exports totalled 931,981 units, up by 29pc from a year earlier.

The value of auto exports in April was up by around 40pc from the previous year to $6.2bn. But it fell from an all-time high of $6.5bn in March, despite still being an all-time-April-high.

Exports of eco-friendly vehicles, such as EVs, rose by 34pc from the previous year to 63,824 units but down by 10pc against the previous month from an all-time high of 71,781 units in March.

Exports of battery EVs doubled against a year earlier but fell by 13pc from the previous month to 29,731 units in April. Shipments of hybrid vehicles fell by 5.4pc from a year earlier and by 12pc against the previous month to 27,256 units. Battery EV exports were at 121,181 units during January-April, up by 85pc from a year earlier, while hybrid model exports were up by 22pc from a year earlier to 107,880 units.

South Korea in May said it is planning to further extend its national strategic technology investment tax credit to certain investments in EV and hydrogen technology and facilities, in a bid to encourage greater investment in these sectors.

By Joseph Ho

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