Industry ministry reports highest-ever July auto exports in South Korea

The industry ministry said Thursday that South Korea's automobile exports in July rose 7.0 percent from a year earlier to a July record of $6.24 billion, supported by firm global demand for eco-friendly vehicles and SUVs and more production days.

Major automakers moved their summer vacations from July last year to August this year, increasing production days. Eco-friendly vehicle exports, driven by electric and hydrogen models and hybrids, climbed 25.5 percent to $2.59 billion. Electric and hydrogen vehicle exports rose 31.9 percent to $940 million, while hybrid exports increased 22.2 percent to $1.65 billion. Internal-combustion vehicle shipments fell 3.1 percent to $3.65 billion.

Exports to North America increased 18.0 percent from a year earlier to $3.25 billion, while shipments to the European Union rose 23.5 percent to $880 million. Exports to the Middle East climbed 12.7 percent to $430 million, returning to growth after eight months.

July production rose 11.3 percent to 352,000 vehicles from a year earlier. Domestic sales edged higher to 139,000 vehicles, with eco-friendly models accounting for about 60 percent of sales. Electric vehicle sales rose 47.5 percent to 36,000 vehicles.

At a meeting with automakers, industry bodies and research institutions, industry representatives sought policy support to maintain a stable domestic production base of more than 4 million vehicles a year. They said the rapid growth of overseas companies, including those in China, was intensifying competition in electric vehicles.

"As the global auto industry is being reshaped by the transition to future vehicles at this extraordinary time, the government, automakers and parts suppliers must work as one team to overcome the challenges together," Park Dong-il, the industry ministry's industrial policy chief, said.

Participants also agreed on the need to shift the auto-parts industry preemptively toward future vehicles and build a system in which automakers and parts suppliers can grow together.