The Strategist

South Korean car exports down 20.7% in September due to semiconductor shortages

10/18/2021 - 06:43

South Korea's car exports fell 20.7 percent year-on-year in September, according to the country's Ministry of Industry, Trade and Energy

Emilio Labrador via flickr
Emilio Labrador via flickr
South Korean manufacturers shipped abroad 151.7 thousand vehicles worth $3.6 billion in September, which is 6.1% less compared to the same period in 2020. The reduction is due to a shortage of semiconductors.

Car production fell 33.1% in September and domestic sales were down 29.7% from a year ago. Exports of cars with electric, hydrogen or hybrid engines hit a record high of $1.04 billion (+46.8%) in September.

In mid-September, Commerce, Industry and Energy Yeo Han-koo met with US Trade Representative Katherine Tai in Washington. The negotiators agreed to strengthen supply chain stability, including in semiconductors.

The semiconductor shortage has been ongoing since the beginning of the year and is affecting global car production in particular. In September, Ford and General Motors North American plants announced production stoppages due to chip shortages, before that Volkswagen and Toyota faced a similar problem. According to Mercedes-Benz chief Ola Kallenius, the shortage could continue until 2023.