Green Cars Drive Korea’s April Car Exports to Record High

Korea’s auto exports hit a five-month high of US$6.8 billion in April as Korean eco-friendly cars gained popularity in North America.

According to the April 2024 Automotive Industry Report released by the Ministry of Trade, Industry and Energy on May 8, automobile exports from January to April reached US$24.3 billion, up 4.7 percent from the same period of 2023. This is the highest on record for the January-April period.

In April alone, Korea’s auto exports increased 10.3 percent year over year to US$6.8 billion. This came five months after breaking the previous monthly export record of US$6.53 billion set in November 2023.

In particular, eco-friendly car exports were up 11.6 percent from April 2023 to US$2.29 billion due to increased demand in the United States, Europe and other major markets. This surpassed the previous record set in March of US$2.27 billion. Hybrid vehicle exports stood at US$1.06 billion in April, up 55 percent from 2023.

Korea’s April auto production was 394,000 units, up 3.5 percent from 2023. Domestic sales totaled 141,000 units, down 5.5 percent from 2023. However, sales of hybrid vehicles inflated 35 percent from 2023 to 40,000 units, as hybrid vehicles were favored in Korea.

The MOTIE is targeting US$75 billion in Korea’s auto exports this year. To achieve this, the ministry plans to strengthen policy support, including enforcing the Future Auto Parts Industry Act beginning from July. “The ministry plans to invest more than 2 trillion won over the next five years through public-private partnerships, including 440 billion won this year, to strengthen Korea’s automotive technology while focusing on helping automotive-related companies resolve export difficulties,” the ministry said.