South Korea’s EV Exports Hit Record high in 2020

South Korean exports of environmentally friendly cars hit an all-time high in 2020, with the share of domestic sales exceeding 10pc for the first time.

South Korea's electric and hybrid vehicle exports rose by 6.8pc on the year to a record high of 276,000 in 2020. Electric vehicle (EV) exports in particular increased by 60.1pc on the year to 121,825 units, according to data from South Korea's trade, industry and energy ministry (Motie).

The share of domestic sales of eco-friendly vehicles was 12pc of the country's total automotive sales at 1.9mn last year, crossing the 10pc threshold for the first time.

The South Korean government aims to become more self-sufficient and competitive in the green car market and less reliant on China, where most of the components are made. Motie plans to invest 73.4 trillion South Korean won ($67bn) in energy initiatives as part of its programme.

South Korea's electric and hybrid vehicle category covers EVs, hybrid electric vehicles, plug-in hybrid electric vehicles and fuel cell electric vehicles.

Auto sales rise; exports, production fall

The country's domestic auto sales reached a record high of 1.9mn in 2020, up by 5.8pc from 2019. The rise was mainly driven by a government policy to boost domestic consumption by cutting its special consumption tax and the launch of new car models in the country's automotive industry, according to Motie.

But South Korea's auto exports shrank by 21.4pc to 1.9mn units in 2020, with a 33.9pc year-on-year decline in the first half and an 8.1pc fall in the second half of the year.

Vehicle production at the country's seven automakers moved down by 11.2pc on the year to 3.5mn units in 2020, as output in the first half of the year was hit by a slowdown in sales and difficulty in securing major parts and components owing to the Covid-19 outbreak.