Korea's September car exports fall 5.5 percent as Middle East war, tighter rules hit used-vehicle trade

South Korea's automobile exports fell 5.5 percent from a year earlier to $6.05 billion in September, the industry ministry said, even as the number of vehicles shipped abroad rose 4.1 percent to 237,000 units.

The ministry attributed the decline in value to a drop in used-car exports, which it said was driven by the war in the Middle East and tighter regulations in major markets. Greener vehicles offered a counterweight: exports of electric and hybrid cars rose 5.9 percent on-year to $2.89 billion.

By region, shipments to North America climbed 9.2 percent to $3.07 billion and those to the European Union rose 15.3 percent to $1.11 billion. Asia fell 60.0 percent to $330 million and the Middle East 7.1 percent to $350 million.

Domestic sales fell 14.3 percent to 135,000 vehicles. The ministry cited three fewer average business days in the month after the Chuseok holiday moved to September from October last year, along with slower electric-vehicle sales as buyers waited for new models and subsidies ran out. Green cars still accounted for about 59 percent of the domestic total at 80,000 units.

Output rose 3.7 percent on-year to 347,000 vehicles, as manufacturers recovered volume lost to wage negotiations and benefited from a low base set by last year's strike.

"We will communicate closely with the industry and actively pursue support for the sustained growth of the automobile sector in response to intensifying global competition as Chinese companies expand into overseas markets," the Ministry of Trade, Industry and Energy said.