SEJONG: South Korea’s automobile exports nosedived at the fastest clip in more than six years in January as fast-falling oil prices dragged down demand from emerging markets, the government said Wednesday.
Outbound shipments of vehicles came to 201,967 units last month, down 18.8 percent from 248,613 units tallied a year earlier, according to the Ministry of Trade, Industry and Energy.
The January figure marked the sharpest on-year drop since October 2010, when it posted a 22.1 percent dive in the aftermath of the 2008 global financial crisis, with its losing streak continuing for three straight months.
It also sank 28.5 percent on-month from December’s 282,507 units. The total value of overseas shipments also tumbled 21.5 percent on-year to US$3.04 billion from $3.87 billion. “South Korea’s auto exports plummeted due to a slump in emerging economies in the Middle East and Latin America, stemming from a steep drop in crude oil and other commodity prices,” the ministry said in a release.
Shipments to the Middle East region slumped 71.1 percent on-year last month, while those to countries in Central and South America slid 48 percent over the cited period.
Domestic sales also retreated 6.8 percent on-year and 38.5 percent on-month to 123,379 units in January as an excise tax cut program finished at the end of the year, the ministry said. In response, the government earlier announced a plan to resume the tax cut on cars this year to revive faltering domestic consumption. The program will be retroactive to January and runs through June.
