Data released on Tuesday showed that South Korea’s car exports rose by 31% annually over the past year, thanks to increased global demand for distinctive, environmentally friendly cars.
The South Korean Ministry of Trade, Industry and Energy stated that the value of automobile exports during the past year amounted to 70.9 billion dollars, compared to 54.1 billion during the previous year, while the value of exports of environmentally friendly cars increased by 50% annually to 24.2 billion dollars.
The South Korean Yonhap News Agency indicated that the average price of South Korean cars in foreign markets increased by 9.5% over the past year, bringing the average price of each car shipped to $23,000, which is its highest level ever.
The ministry said in a statement, “While there were concerns about the US inflation reduction law, the government continued to communicate with Washington to make locally produced environmentally friendly cars eligible for US tax incentives of up to $7,500 per car when used for commercial purposes such as leasing.”
Meanwhile, the total number of cars exported by South Korea last year reached 2.76 million cars, an increase of 20.3% annually.
North America accounted for the largest portion of South Korean automobile exports last year, with a share of more than 50% of total exports, after the value of exports to this market increased by 44.7% to $36.9 billion. The European Union followed suit and acquired exports worth $10.8 billion, an increase of 32.9% annually.
The value of exports to Asian countries amounted to $5.68 billion, an increase of 28.7%, while exports to the Middle East recorded $5.48 billion, an increase of 13% during this period.
At the same time, domestic car sales in 2023 increased by 3.3% to 1.73 million cars, and domestic production reached 4.24 million cars in 2023, an increase of 13% annually.
