S. Korea's auto exports down 2.9% amid automotive chips shortage

South Korea's automobiles exports dropped 2.9 percent on-year to 181,046 units in July as the global automotive chips supply shortage hindered production, according to the Ministry of Trade, Industry, and Energy.

In terms of value, exports advanced 12.3 percent to US$4.1 billion.

The ministry attributed the drop to a low base effect, as overseas shipments of cars surged in July 2020 following a sharp decrease in demand earlier in the year due to the pandemic.

Exports of SUVs dipped due to the lack of new models, with the supply shortages of automotive chips also disrupting their production.

Hyundai Motor’s exports moved up 5.1 percent on-year in July on the back of the strong performance of the Palisade, GV70, and GV80 SUV models.

Overseas sales of Hyundai's smaller sister Kia Corp., on the other hand, decreased 1.8 percent over the period.

Outbound shipments of GM Korea Co. plunged 47.7 percent as those by SsangYong Motor Co.'s tripled on-year on a base effect and Renault Samsung Motors’ more than doubled.

Exports to North America declined 11.6 percent on-year in July to US$1.79 billion, while those to the European Union moved up 8.5 percent to $583 million. Shipments to the Middle East more than doubled to $397 million.

Production of automobiles fell 13.9 percent on-year to 297,585 units in July amid the supply shortages of automotive chips.

Local demand also dropped 9.6 percent to 147,697 units amid the lack of new models.