Korea's passenger car exports reached unprecedented levels in 2023, experiencing a remarkable increase of over 30 percent, primarily driven by the growing demand for eco-friendly models. According to data from the Korea Customs Service, domestic car manufacturers shipped passenger cars valued at $63.81 billion last year, a significant surge from the $49 billion recorded the previous year. The number of cars exported also witnessed a substantial rise of 18.3 percent year-on-year, reaching 2.73 million units.
This outstanding performance can be attributed to improved supplies of automotive chips and the robust demand for electric vehicles (EVs) and other eco-friendly models. In particular, exports of eco-friendly models saw an astonishing 50.6 percent year-on-year increase, totaling $24 billion in 2023, marking another record high. These eco-friendly models accounted for the largest-ever share of Korea's total passenger car exports, representing 37.6 percent of the total.
In terms of export destinations, the United States and Canada saw significant growth in imports of Korean passenger cars, with increases of 44.7 percent and 43.9 percent, respectively. Germany and Australia also experienced substantial growth in imports, with figures rising by 62.3 percent and 5.7 percent, respectively.
On the import front, Korea's imports of passenger cars also reached a record high of $14.5 billion in 2023, marking a 3.3 percent year-on-year increase. However, the number of imported units declined by 8.1 percent to 300,000 in the same year.
This surge in passenger car exports underlines Korea's competitive position in the global automotive industry, driven by the increasing popularity of eco-friendly vehicles and the recovery of chip supplies, which bodes well for the country's trade prospects in the years ahead.
