Seoul: South Korea's auto exports experienced a significant decline of 29.8 percent in August compared to the previous year, attributed to fewer working days and production interruptions caused by strikes, as revealed by recent data on Thursday.
According to Yonhap News Agency, the Ministry of Trade, Industry, and Resources reported that the total value of automobile shipments dropped to US$3.85 billion last month from $5.49 billion a year earlier. The ministry cited summer holidays and production losses due to strikes at certain carmakers as major factors affecting exports.
Region-specific data showed that exports to North America and the European Union decreased by 28.2 percent and 16.8 percent, respectively, falling to $1.84 billion and $659 million. Meanwhile, exports to Asia and the Middle East saw sharper declines of 41.9 percent and 23.6 percent, respectively, reducing to $343 million and $234 million.
Additionally, the number of vehicles exported fell by 26.9 percent year-on-year, totaling 146,000 units last month. The domestic market also faced challenges, with 110,000 vehicles sold, marking a 20.8 percent decline from the previous year. The production of locally manufactured vehicles saw a decrease of 35.8 percent, totaling 206,000 units.
Despite these setbacks, the ministry expressed optimism for the future, anticipating improvements in vehicle exports and production later this year due to recent wage agreements reached by major carmakers.
Source: Yonhap News Agency