South Korea’s exports of eco-friendly vehicles, including hybrid and electric cars, experienced a significant decline in February. (Image courtesy of Yonhap)
SEOUL, Mar. 21 (Korea Bizwire) – South Korea’s exports of eco-friendly vehicles, including hybrid and electric cars, experienced a significant decline in February, marking the first contraction in over three years, a concerning trend given the country’s rising dependence on electric vehicle (EV) exports.
According to data released on March 20 by the Korea Automobile Manufacturers Association (KAMA), exports of eco-friendly vehicles, encompassing hybrids, electric vehicles, plug-in hybrids, and hydrogen fuel cell electric vehicles, totaled 53,369 units in February, a 13.8% decrease compared to the same period last year. This contraction is the first since December 2020, ending a streak of over three years of growth.
The decline is attributed to a global slowdown in electric vehicle demand, which has significantly impacted South Korea’s EV export performance. In 2022, electric vehicle exports reached 346,880 units, surpassing hybrid vehicle exports of 313,072 units for the first time, underscoring the increasing importance of EVs in South Korea’s eco-friendly vehicle export portfolio.
Last month, electric vehicle exports plummeted by 20.7% year-over-year to 24,318 units, marking the first decline in 31 months since July 2021. While hybrid and plug-in hybrid exports also decreased by 2.2% (562 units) and 26.8% (1,587 units), respectively, the decline in electric vehicle exports, at 6,352 units, was substantially larger.
As the global slowdown in electric vehicle growth intensifies this year, its impact on South Korea’s eco-friendly vehicle exports is expected to intensify further. SNE Research, an energy market research firm, forecasts that global electric vehicle registrations will reach 16.75 million units in 2024, representing a more modest growth rate of 19.1% compared to last year’s 33.5% increase, which saw 14.07 million EVs registered worldwide.
Kim Pil-soo, a professor at Daelim University, stated, “The noticeable decrease in eco-friendly vehicle export volumes, which had been maintaining steady growth, is a clear indication of declining global demand for electric vehicles.” He added, “Once Hyundai Motor Group completes its Hyundai Motor Group Metaplant America facility next year, South Korea’s eco-friendly vehicle exports could decline further.”
Kevin Lee (kevinlee@koreabizwire.com)
