Auto exports in May sink 6 percent, parts disruptions to blame

Korea's auto exports decreased nearly 6 percent in May from a year earlier, data showed Wednesday, amid disruptions in the supply of auto parts following a fire at a local factory in March.

The combined value of automobile exports came to $5.83 billion last month, down 5.9 percent from the same month last year, according to data from the Ministry of Trade, Industry and Resources.

Outbound shipments to North America, Latin America and the European Union fell 1 percent, 3.6 percent and 6.5 percent, respectively. Those to the Middle East dropped 4.2 percent.

Exports to Oceania and Africa, on the other hand, shot up 20.1 percent and 16.1 percent, respectively.

The ministry said exports of ecologically friendly automobiles maintained solid growth, expanding 9.9 percent on-year to $2.4 billion.

Domestically, 127,315 vehicles were sold last month, down 10.3 percent. Sales of locally manufactured cars fell 14.2 percent to 96,240, while those of imported cars rose 4.8 percent to 31,075.

The data also showed that domestic automobile production contracted 8.2 percent on-year to 329,559 units.

Production at Hyundai Motor and Kia decreased 12 percent and 2 percent, respectively.

Production at GM Korea, the Korean unit of General Motors; KG Mobility; and Renault Korea Motors fell 6.6 percent, 8 percent and 46.5 percent on-year, respectively, in May.

"As the May figures reflect the fallout from a fire at an auto parts factory that led to manufacturing disruptions, production and exports are expected to gradually improve starting in June as supplies normalize," the ministry said.

Yonhap