South Korean Vehicle Exports to the Middle East Fall 4.2% in May Amid Supply Chain Disruptions

Newly released data on Wednesday showed that South Korea's vehicle exports declined in May compared with the same period last year, largely due to disruptions in auto parts supplies following a fire at a local manufacturing facility.

Shipments to North America, Latin America, and the European Union fell by 1%, 3.6%, and 6.5% respectively. Exports to the Middle East also recorded a decline of 4.2% during the month.

In contrast, vehicle exports to Oceania and Africa posted strong growth, rising by 20.1% and 16.1% respectively.

The total value of automotive exports reached US$5.83 billion last month, down 5.9% from the same month a year earlier, according to data from the Ministry of Trade, Industry and Resources.

The ministry noted that environmentally friendly vehicle exports maintained solid momentum, increasing 9.9% year-on-year to US$2.4 billion.

In the domestic market, total vehicle sales reached 127,315 units last month, representing a 10.3% decline. Sales of locally manufactured vehicles dropped 14.2% to 96,240 units, while imported vehicle sales increased 4.8% to 31,075 units.

Data also showed that domestic vehicle production contracted 8.2% year-on-year to 329,559 units.

Production at Hyundai Motor and Kia declined by 12% and 2% respectively. Output from GM Korea, KG Mobility, and Renault Korea Motors also decreased by 6.6%, 8%, and 46.5% respectively in May.