Vehicle exports fell 33 percent in first half

Korea's exports of automobiles dropped 33.4 percent in the first six months of 2020 from a year earlier, due mainly to the new coronavirus pandemic that has strained global business activities while weighing on consumers' sentiment, data showed Tuesday.

Local carmakers shipped 826,710 units of cars overseas in the January-June period, according to the data compiled by the Ministry of Trade, Industry and Energy. In terms of value, outbound shipments of cars reached $15.76 billion over the period, also down 27.3 percent on year.

The slump in outbound shipments came as the Covid-19 pandemic has led to lockdowns across the globe, with overseas distributors of Korean automobiles also shutting down their businesses.

The global economic crisis sparked by the pandemic also induced consumers to have second thoughts about purchasing brand new cars.

Korea's combined auto production decreased 19.8 percent on year to 1,627,534 units in the first half due to the fewer number of working days coupled with shortages in some parts.

Domestic sales, on the other hand, shot up 7.2 percent to 930,464 in the first six months of the year on the back of carmakers' promotions and marketing efforts.

In June, however, Korea's exports of cars showed signs of a possible recovery as key economies around the globe slowly began to resume business activities.

Outbound shipments of cars in June decreased at a slower pace of 37.4 percent to 132,514 units, compared with a whopping 57.5 percent on-year drop posted in May, the data showed.

Yonhap