Automobile exports and production fell last month due to the prolonged Middle East war and expanded local production in Europe. However, exports and domestic sales of eco-friendly cars, led by electric and hybrid vehicles, continued double-digit growth.
According to the "April 2026 automobile industry trends" released by the Ministry of Trade, Industry and Resources on the 20th, automobile exports last month totaled 244,990 units, down 0.8% from a year earlier. In value terms, exports came to $6.166 billion, a decrease of 5.5% from a year earlier.
The regions that led the export decline were the Middle East and Asia. Exports to the Middle East were $273 million, plunging 38.7% from a year earlier. The drop is analyzed as a result of weakened demand due to logistics disruptions from the prolonged Middle East war. Exports to Asia also fell 31.7% to $466 million, mainly because detour exports to Russia shrank sharply in some Central Asian countries that had served as hubs for midstream used-car transactions.
Exports to the EU also fell 13.1% year over year to $828 million. As Kia ramped up local production of the small EV2 at its plant in Zilina, Slovakia, part of the export volume of Korean-made finished cars appears to have been replaced by local production. In contrast, North America (+2.4%), Central and South America (+23.7%), and Oceania (+20.1%) posted increases, partially offsetting the export decline.
Eco-friendly car exports maintained clear growth despite these headwinds. In April, eco-friendly car exports were 90,508 units, up 22.8% from a year earlier, and export value rose 13.5% to $2.52 billion. By type, hybrid vehicle exports surged 40.2% to $1.51 billion, while electric and hydrogen vehicles increased 23.1% to $920 million.
April automobile production totaled 361,926 units, down 6.1% from a year earlier. Production increased at Korea GM (+15.4%), KG Mobility (+8.6%), and Kia (+0.5%), but fell sharply at Hyundai (-16.2%) and Renault Korea (-32.3%).
A Ministry of Trade and Industry (MOTI) official said, "The production decline is analyzed to be due to some parts supply chain issues and pent-up demand ahead of the launch of new and facelift models of major lineups," adding, "Normalization is expected from June."