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South Korea’s green car exports account for 30% of total car exports

South Korea’s green car exports account for 30% of total car exports

South Korea’s eco-friendly car exports reportedly accounted for over 30% of overall vehicle exports this year, the Korea International Trade Association has said.

As per reports, on July 11, the association reported that between January and May of 2022, exports of cars reached around $20.453 billion, with exports of environmentally friendly cars coming in at $6.198 billion, or 30.3% of all vehicle exports.

The percentage of environmentally friendly car exports during the same time-period last year was 21.6%, which means that the category has showcased an increase of 8.7% in a single year.

As the world pushes carbon-neutral regulations, there is a rising need for environmentally efficient automobiles.

Furthermore, as South Korean EVs like Hyundai Motor's Ioniq 5 as well as Kia EV6 began to gain traction in the United States, the world's largest automotive market, the share of exports rose sharply.

The Ioniq 5 from Hyundai Motor Company exported the most eco-friendly vehicles overall, with 25,381 units, with the EV6 from Kia following close behind with 25,052 units shipped.

When it comes to hybrid vehicles, the XM3 from Renault Korea Motors had the highest export volume of 26,597 units. The Hyundai Kona as well as Kia Niro, with 14,422 and 13,078 units respectively, came in second and third.

The median export price per unit of green vehicles is also increasing. As per data from the Automobile Industry Association and the Korea International Trade Association, between January and May of this year, the average export unit price was $28,865, an increase of 4% over the $27,762 noted during the same time in 2021.

It is to be noted that the average export unit price of cars with internal combustion engines is $27,763, while the cost of eco-friendly cars is approximately 39% higher.

In fact, the average export unit price for green cars has increased by $2,500 to $3,000 yearly, from over $23,100 in 2019, to $26,309 in 2020, and more than $28,810 in 2021,.

By the end of 2022, it is anticipated that the export unit price of green vehicles would surpass $30,000.

In the meantime, domestic sales of environmentally friendly vehicles surpassed 200,000 units in the first two quarters of 2022. This is a jump of over 40% from a year prior.

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Omkar Patwardhan

Omkar Patwardhan started his professional career in the hospitality industry. Having nurtured a deep-sated passion for words however, he found his way into content writing and now pens down articles for numerous websites, including News Origins, spanning the sectors of business, finance, and technology.