SEJONG: South Korea’s automobile exports rose in March as strong global demand for hybrid vehicles lifted overseas shipments despite weaker sales in parts of Asia and the Middle East. The Ministry of Trade, Industry and Resources said auto exports totaled $6.37 billion last month, up 2.2% from a year earlier and marking the second-highest figure ever recorded for March. Export volume increased 7.8% from a year earlier, while the ministry said gains in eco-friendly models helped offset disruption in some overseas markets.
Hybrid vehicles were the clearest driver of the March increase. The ministry said the export value of hybrid cars surged 79% from a year earlier, while total exports of eco-friendly vehicles climbed 42.6% to 98,040 units. Within that total, hybrid exports rose 62.9% to 68,378 units and electric vehicle exports increased 32.7% to 27,541 units, while plug-in hybrid exports fell 64.8% to 2,121 units. The data showed hybrid models accounted for about 70% of eco-friendly vehicle exports in March.
Regional performance was uneven, highlighting the extent to which hybrid demand supported the headline gain. Exports to the European Union rose 33% in March from a year earlier, but shipments to Asia fell 38.4% and exports to the Middle East dropped 40.8%. In a broader trade update issued earlier this month, the ministry said auto exports had been supported by eco-friendly vehicles even as conflict-linked disruptions affected logistics tied to the Middle East, adding pressure to some routes and regional demand.
Hybrid Exports Drive March Gain
The March report also showed firmer conditions at home. Domestic auto sales rose 10.2% from a year earlier to 165,000 units, while production increased 4.5% to 387,000 units. Eco-friendly vehicles accounted for about 98,000 domestic sales in March, or roughly 59% of the total, according to the ministry. For the first quarter, domestic sales rose 5.3% to 409,000 units and production increased 1.3% to 1.026 million units, extending South Korea’s run of first-quarter auto output above one million units to a fourth straight year.
Even with the March increase, first-quarter export performance was broadly flat. The ministry said cumulative auto exports for January through March slipped 0.2% from a year earlier to $17.2 billion. By region in the first quarter, exports to the European Union rose 14.2%, while shipments to Asia fell 38.9% and exports to the Middle East declined 21.3%. The ministry said it would continue monitoring risks to parts supply and maritime logistics stemming from instability in the Middle East as it works to support production and outbound shipments.
Quarterly Data Show Broad Industry Support
The latest quarterly data also pointed to a broad base of exporters within the industry. By automaker in the first quarter, export volume was led by Hyundai at 283,577 units, followed by Kia at 262,633 units and GM Korea at 129,944 units, according to the ministry’s industry figures. Those numbers underscored the role of South Korea’s major manufacturers in sustaining export flows as overseas demand shifted toward hybrid models and as the European Union became a stronger outlet for Korean-built vehicles.
The March figures add to a pattern that has taken shape in South Korea’s auto trade, with hybrid vehicles providing a stronger cushion as demand for lower-emission models remains a central feature of overseas markets. For March, the ministry’s data showed that trend clearly, with hybrid shipments doing most of the work in lifting export value while domestic sales and output also moved higher. That left South Korea’s auto sector ending the first quarter with a firm March rebound but a nearly flat quarterly export tally overall – By Content Syndication Services.
