Korean Electric Vehicles’ Domestic Sales, Exports Plunge in Q1

Domestic sales and exports of electric vehicles plummeted in the first quarter of 2024, while sales of hybrid vehicles ballooned. The analysis is that hybrid vehicles, which are more fuel-efficient and environmentally friendly, are becoming a substitute as electric vehicles have fallen into a chasm (a slump in demand just before popularization) due to high prices and insufficient charging infrastructure.

The Korean Ministry of Trade, Industry and Energy (MOTIE) said on April 11 that exports of electric vehicles fell 9.8 percent year on year to 82,478 units in the first quarter, while exports of hybrid vehicles swelled 5.8 percent to 84,235 units. As of March, hybrid vehicle exports reached a record high of US$850 million, up 37.1 percent year on year. However, exports of electric cars, hydrogen cars and plug-in hybrids fell 20.2 percent to US$1.23 billion.

In the Korean market, hybrid sales grew stronger and EV sales fell during the same period. In the first quarter, domestic sales of eco-friendly vehicles increased 16.3 percent year on year. Hybrid vehicle sales grew 39.6 percent to account for 111,766 units, while electric vehicle sales slid 29.4 percent to 25,416 units.

The value of automobile exports increased 2.7 percent year on year to US$17.5 billion, the highest first quarter figure on record in the first quarter.

By region, exports were up 21.0 percent to North America (US$10 billion), which accounted for the majority of exports, while those to the rest of the EU (-21.1 percent), the Middle East (-27.3 percent), and Asia (-2.0 percent) all descended.

Domestic production decreased 3.7 percent year on year to 1,044,220 units. Domestic sales were down 11.9 percent from 2023 to 378,228 units, with sales of both Korean and imported vehicles declining by more than 10 percent.