The average price of South Korea’s car exports hit a new record high in the first half of 2024 as demand for premium models grew, recent data showed. According to data compiled by the Korea Automobile & Mobility Association, the average price of car exports reached $25,224 over the January-June period, up 0.5 percent from $25,079 during the same period last year.
Growing demand for eco-friendly models
The increase came amid growing demand for eco-friendly models as well as SUVs and commercial cars which typically come with higher price tags. This increase brought the combined value of automobile exports in South Korea to $37 billion in the first half of this year, up 3.9 percent compared to the same period last year.
South Korea’s exports of hybrid cars rose 19.5 percent year-on-year in the first half of 2024. Of the total, commercial car exports also increased by 6 percent, according to separate data compiled by the Ministry of Trade, Industry and Energy.
“Exports of commercial vehicles are showing signs of recovery from the slump caused by the COVID-19 pandemic, which had affected public transportation usage, as well as from the rise of Chinese competitors with higher price competitiveness,” an industry watcher said.
However, overall shipments of battery electric vehicles declined 17.5 percent to $7.02 billion while internal combustion engine (ICE) vehicle exports rose 7.2 percent to $29.99 billion.
U.S. is the biggest export destination for South Korea’s cars
The U.S. was the biggest export destination for South Korea’s cars during H1 of 2024 with shipments surging 30 percent to $18.45 billion, almost half the country’s total auto exports.
Shipments to the EU, however, declined by 30 percent to $3.94 billion while exports to the Middle East fell by 19 percent and Latin America by 8 percent.
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