Export vehicles are parked at the Pyeongtaek Port car-only terminal in Pyeongtaek City. /Courtesy of News1

Last month, sales of eco-friendly vehicles in the country surpassed sales of internal combustion engine vehicles for the first time. Exports of eco-friendly vehicles also recorded an all-time high, continuing their upward trend.

According to the Ministry of Trade, Industry and Energy on the 17th, among the 142,000 cars sold in May, 74,000 were eco-friendly vehicles, accounting for 52% of the total. This is the first time that domestic sales of eco-friendly vehicles have exceeded those of internal combustion engine vehicles.

Last month, domestic sales of eco-friendly vehicles recorded 73,511 units, a 39% increase compared to the same month last year. By vehicle type, hybrids accounted for the most at 50,613 units, which is a 31.4% increase from a year ago. Sales of electric vehicles and plug-in hybrids also surged by 60.3% and 115.9%, respectively. In contrast, hydrogen vehicles declined by 75.8%.

An official from the Ministry said, "Domestic sales of Korean electric vehicles increased by 58.8%," adding, "The variety of electric vehicles released, including Casper EV, Musso EV, and EV4, has broadened consumer choices."

Overall domestic sales, including internal combustion engine vehicles, also showed an upward trend. Last month, domestic automobile sales reached 141,865 units, marking a 0.4% increase compared to the same month last year.

However, the increase in domestic sales mainly benefited imported cars. Last month, domestic sales of Hyundai vehicles decreased by 5.2%, Kia by 2.4%, and Korean GM saw a significant decline of 40%. In contrast, imports rose by 13.1% compared to the same month last year, driving overall domestic growth.

◇ Exports of eco-friendly vehicles hit record highs... Exports of automobiles and auto parts decreased

Last month, the number of eco-friendly vehicle exports also reached 75,000 units, the highest ever recorded. This represents a 10.2% increase compared to the same month last year. However, due to falling prices, export values decreased by 0.6% year-on-year.

Despite the strong sales of eco-friendly vehicles, the overall export performance of automobiles and auto parts was sluggish. Last month, automobile export values reached $6.21 billion, a 4.4% decline compared to the same month last year. Exports of auto parts amounted to $1.663 billion, marking a 9.4% decrease.

By region, exports to the United States were hit hardest. Due to the impact of tariffs, last year's base effects, and local production in the U.S., automobile exports to the U.S. reached $3.079 billion in May, a 27.1% decrease compared to the same month last year. This is the largest drop since January (-30.8%). Exports to the Middle East (-7.2%) and Oceania (-1.3%) also decreased compared to the same month last year.

However, exports to the EU (28.9%) and non-EU European regions (30.9%), as well as Asia (45.1%), Central and South America, and Africa increased, partially offsetting the decline. An official from the Ministry said, "The EU is imposing tariffs (17.8-45.3%) on Chinese electric vehicles, and as Tesla's market share in the EU declines, Korean automobiles have gained a spillover benefit," noting that "exports of used cars are also contributing to the increase in exports to Asia and other European regions."

He added, "Currently, the decline in exports to the U.S. is being offset by increases in exports to other regions," and noted, "As the price competitiveness of Chinese electric vehicles strengthens, global competition is intensifying, and it is uncertain how long this export structure will be maintained."