May 2023 witnesses a remarkable 25% y-o-y surge in South Korea's automobile production

In May 2023, the automobile industry in South Korea continued to demonstrate encouraging progress, as both production and sales displayed positive growth compared to the previous month and the corresponding period of the previous year.

The month of May 2023 witnessed the combined automobile production of six leading domestic automakers, Hyundai Motor, Kia, GM Korea, Ssangyong Motor, Renault Korea, and Tata Daewoo, with significant growth. The production numbers escalated by 24.5 per cent or 75,081 units, compared to the previous year and showed a minor increase of 0.3 per cent or 1,102 units, compared to the previous month, reaching a total of 382,129 units. This boost in production can be attributed to strong global demand and a rise in exports.

The industry-focus report by AL Circle, "Global Aluminium Industry Outlook 2023", reveals that the automotive industry will be the key demand driver of aluminium.

During the period of January to May 2023, the total number of automobiles manufactured reached 1,827,410 units, reflecting a substantial increase of 26 per cent compared to the previous year. Moreover, sales figures recorded during the same period amounted to 1,913,480 units, indicating an impressive growth of 22.4 per cent.

According to OECD estimates, South Korea's per capita aluminium consumption will be the highest globally by 2023, thanks to its expansive automobile and electrical sectors. As of 2022, South Korea's per capita aluminium consumption is 42.76 kg.

South Korea experienced a significant year-on-year increase in total automobile sales, with a growth of 22.9 per cent or 74,597 units, reaching a total of 400,945 units in May 2023. Additionally, compared to the previous month, there was a modest month-on-month increase of 0.6 per cent or 2,466 units.

The May 2023 domestic market sales experienced a year-on-year increase of 4.6 per cent, equivalent to 6,726 units, reaching a total of 152,190 units. On a month-on-month basis, there was a 1.9 per cent growth, or 28,106 units, compared to the previous month. The rise in domestic vehicle sales can be attributed to the growing popularity of large sedans and robust sales of recreational vehicles (RVs). When considering the period from January to May, the cumulative domestic sales amounted to 731,038 units, reflecting a significant year-on-year increase of 10.5 per cent.

As per the country's customs data, the auto export volumes witnessed a year-on-year increase of 37.5 per cent, equivalent to 67,871 units. However, on a month-on-month basis, there was a slight decline of 0.1 per cent, amounting to 350 units, bringing the total to 248,755 units. The ongoing trend favouring domestic eco-friendly vehicles remained strong, driven by robust global demand, particularly in North America and Europe. Cumulatively, from January to May, the total exports reached 1,182,442 units, marking a substantial year-on-year growth of 31.2 per cent.

              Received under the content exchange agreement with SteelMint