Exports and Production of Automobiles Decline in May... Eco-Friendly Vehicles Show Resilience

Impact of Parts Supplier Fire and Fewer Working Days
Domestic Electric Vehicle Sales Surge 65%
Eco-friendly Vehicle Exports Rise 10%

Yonhap News Agency

The domestic automobile industry experienced declines in exports, domestic sales, and production last month due to production disruptions caused by a fire at a parts supplier and a reduction in the number of working days. However, eco-friendly vehicles continued to see growth in both exports and domestic sales, supporting overall performance.

According to the "Automobile Industry Trends for May 2026" released by the Ministry of Trade, Industry and Energy on the 17th, automobile export value last month was USD 5.83 billion, down 5.9% from the same month last year. During the same period, domestic sales fell 10.3% to 127,315 units, and production decreased by 8.2% to 329,559 units. However, for the cumulative period from January to May this year, domestic sales rose 1.0% to 687,912 units.

By region, exports increased in Oceania (20.1%) and Africa (16.1%), but declined in major markets such as North America (-1.0%), the European Union (EU, -6.5%), Asia (-37.3%), and the Middle East (-4.2%). The ministry attributed these declines to logistics disruptions caused by the prolonged Middle East conflict and a decrease in used car exports.

Eco-friendly vehicles maintained their growth momentum. Last month, exports of eco-friendly vehicles reached USD 2.4 billion, up 9.9% year-on-year, accounting for over 40% of total automobile exports. In particular, hybrid vehicles led this growth, making up about 65% of eco-friendly vehicle exports. The number of eco-friendly vehicles exported also increased by 11.2% to 83,145 units.

In the domestic market, sales of eco-friendly vehicles increased by 5.5% to 77,179 units. Their share of total domestic sales surpassed 60%. Notably, electric vehicle sales surged by 65.4% to 35,416 units.

By company, Hyundai Motor produced 138,407 units, down 12.0%, while Kia produced 131,648 units, a decrease of 2.0%. In contrast, although GM Korea's production declined by 6.6% to 46,311 units, its cumulative production increased by 12.2%. Export volumes were as follows: Hyundai Motor 90,271 units (-6.7%), Kia 85,640 units (-4.7%), and GM Korea 46,230 units (-4.9%).

The Ministry of Trade, Industry and Energy explained that the main reasons for the decreased performance were the reduced number of working days and production disruptions caused by the parts supplier fire. The ministry also forecast that as parts supply normalizes from June, production and export performance are expected to gradually improve.

This content was produced with the assistance of AI translation services.