South Korea's automobile production, sales rise y-o-y, fall m-o-m in Aug'23

South Korea's automobile industry remained on track in August 2023, with positive growth in production compared to the same month in the previous year. Also, sales registered growth on a y-o-y basis.

Automobile production increased by 9.6% or 27,255 units y-o-y to 311,959 units in August 2023. However, it registered a fall of 11.6% or 141,033 units m-o-m from 352,972 units in July 2023, as per the Korea Automobile Mobility Industry Association.

Meanwhile, cumulative automobile production in January-August, 2023 stood at 28,62,627 units, up 20% from the same period last year.

Sales increase 10.6% y-o-y

South Korea's total automobile sales increased by 10.6% or 31,712 units y-o-y. But, sales fell by 9.6% or 35,184 units m-o-m to 329,881 units in August 2023. For January-August, 2023, sales were tallied at 30,19,850 units, up 18.7% y-o-y.

Sales in the domestic market marginally declined by 0.7% or 971 units y-o-y and were down 4% or 5,422 units m-o-m to 1,30,667 units in August 2023.

The industry attributed the decline in domestic sales to the end of the individual consumption tax reduction policy and decline in imported car sales.

Total domestic sales from January-August, 2023 stood at 1,169,470 units, up 8% y-o-y.

Exports rise 19.6% y-o-y

Auto export volumes rose by 19.6% or 32,683 units y-o-y, but decreased by 13% or 29,762 units m-o-m to 1,99,214 units in August 2023.

Strong sales of domestically produced cars in the North American and European markets contributed to this growth. The total value of these exports was $5.3 billion, also the highest-ever for August. Electric vehicle exports played a significant role, experiencing a remarkable growth of 61%, and eco-friendly vehicles, including electric cars, accounted for one-third of total exports.

This growth is attributed to the normalization of parts supply, such as automotive semi-conductors, and effective collaboration between public and private sectors to address trade issues.

Total exports in January-August, 2023 stood at 18,50,380 units, up 26.6% y-o-y.

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