Auto Exports And Domestic Sales Fall

Export shipping dock at Hyundai Motor’s Ulsan plant (provided by Yonhap News)  South Korea’s auto industry retreated in both exports and the domestic market in September 2026. According to the “September Automotive Industry Trends” released by the Ministry of Trade, Industry and Energy on Oct. 19, automobile exports totaled $6.05 billion, down 5.5% from the same month a year earlier. Domestic sales also fell 14.3% to 135,000 units. A worsening external environment was cited as a major cause of sluggish exports. Export value to the North American and European Union markets rose 9.2% and 15.3%, respectively, but the industry took a direct hit in Asia and the Middle East. Exports to Asia plunged 60.0% in particular, while those to the Middle East also declined 7.1%. The ministry attributed this to a combination of logistics disruptions caused by the prolonged war in the Middle East and a drop in used-car exports resulting from tighter regulations in major countries. The domestic market was affected by seasonal factors, including Chuseok holiday travel and the exhaustion of subsidies. With this year’s Chuseok holiday moved up to September, the number of business days decreased, while delayed purchases due to the depletion of electric vehicle subsidies and waiting demand for new models led to slower sales. In contrast, automobile production rose 3.7% from a year earlier to 347,000 units. Settlements in wage negotiations at major automakers and a base effect from strikes last year helped lift production figures. Even amid the broader market contraction, eco-friendly vehicles stood out. Exports of eco-friendly vehicles in September increased 5.9% to $2.89 billion, accounting for about 48% of total automobile exports. By export volume, shipments reached 98,803 units, of which hybrid vehicles made up about 67% with 66,516 units, supporting overall export performance. In the domestic market, imported electric vehicles showed notable strength. Tesla’s Model Y sold 11,421 units last month, overtaking popular domestic models such as the Grandeur, with 8,898 units, and the Avante, with 7,305 units, to rank No. 1 in domestic sales. The Model Y’s cumulative sales for January through September this year came to 73,123 units, sharply narrowing the gap with the current leader, the Sorento, at 74,933 units, as it aims for the annual sales crown. By company, Tesla sold 12,372 units in South Korea, up 36.4% from a year earlier, ranking third in sales after Hyundai Motor and Kia. Chinese brand BYD also posted a 156.3% surge in sales to place sixth. By contrast, in the domestic eco-friendly vehicle market, hybrid vehicle sales fell 11.1%, while hydrogen vehicles plunged 72.4% to just 365 units sold, underscoring mixed fortunes by vehicle type.