Seoul, June 17 (IANS) South Korea’s auto exports decreased nearly 6 per cent in May from a year earlier, data showed on Wednesday, amid disruptions in the supply of auto parts following a fire at a local factory.
The combined value of automobile exports came to US$5.83 billion last month, down 5.9 percent from the same month last year, according to data from the Ministry of Trade, Industry and Resources, reports Yonhap news agency.
Outbound shipments to North America, Latin America and the European Union fell 1 percent, 3.6 percent and 6.5 percent, respectively. Those to the Middle East dropped 4.2 percent.
Exports to Oceania and Africa, on the other hand, shot up 20.1 percent and 16.1 percent, respectively.
The ministry said exports of eco-friendly automobiles maintained solid growth, expanding 9.9 percent on-year to $2.4 billion.
Domestically, 127,315 vehicles were sold last month, down 10.3 percent. Sales of locally manufactured cars fell 14.2 percent to 96,240, while those of imported cars rose 4.8 percent to 31,075.
The data also showed that domestic automobile production contracted 8.2 percent on-year to 329,559 units.
Production at Hyundai Motor Co. and Kia Corp. decreased 12 percent and 2 percent, respectively.
Production at GM Korea Co., the South Korean unit of General Motors Co.; KG Mobility Corp.; and Renault Korea Motors Co. fell 6.6 percent, 8 percent and 46.5 percent on-year, respectively, in May.
“As the May figures reflect the fallout from a fire at an auto parts factory that led to manufacturing disruptions, production and exports are expected to gradually improve starting in June as supplies normalise,” the ministry said.
Meanwhile, Seoul stocks opened lower on Wednesday, partly driven by investors pulling out of stocks related to artificial intelligence (AI) in the U.S. market.
The benchmark Korea Composite Stock Price Index (KOSPI) was down 75.79 points, or 0.87 percent, to 8,650.81, as of 9:15 a.m.
The index followed declines on Wall Street overnight, where a tech sell-off knocked down the S&P500 by some 0.5 percent and the Nasdaq by 1.15 percent.
Nvidia surprised investors with a plan to issue US$25 billion worth of bonds, which marked the chip giant’s first bond sale in five years. Its shares fell 2.4 percent.
Investors were also cautious ahead of the Federal Reserve’s policy update due Wednesday (U.S. time) afternoon, with some concerned that the new Fed chair could signal a more hawkish tone in this first meeting.
—IANS
na/
