March domestic auto industry records high growth across all sectors, overcoming 'Middle East war setbacks'

*This content was translated by AI.

Analysis of the Ministry of Trade, Industry and Energy's report, "Automotive Industry Trends for the First Quarter of 2026," released on the 15th, revealed that the domestic automotive industry recorded robust performance in March, achieving high growth across all sectors—exports·domestic sales·and production—compared to the same month last year.

In the export sector, the strong performance of HYBE-led vehicles stood out. March auto exports reached $6.37 billion, securing second place among all March records, with HYBE-led vehicle exports alone surging 79% year-on-year, driving growth. Regionally, exports to the European market, including the EU, rose 14.2%, showing renewed momentum, while exports to Asia and the Middle East plummeted by 38.9% and 21.3% respectively, reflecting the impact of geopolitical risks such as the Middle East war. As a result, total first-quarter exports amounted to $17.49 billion, a slight 0.2% decline year-on-year; however, export volumes increased by 3.5%, maintaining growth in terms of quantity.

The domestic market also showed strong performance, driven by the effects of new vehicle launches and increased demand for eco-friendly cars. Domestic sales in March reached 163,000 units, a 10.2% increase compared to the same month last year. Particularly, popular SUV models such as Santa Fe and Sportage led the market by occupying top positions in domestic sales rankings. Total domestic sales for the first quarter amounted to 412,000 units, reflecting a 5.3% growth year-on-year and demonstrating robust demand.

The production sector saw its capacity utilization rise as exports and domestic demand grew in tandem. March production reached 371,000 units, a 4.5% increase compared to the same month last year, while cumulative production for the first quarter totaled 1.044 million units, up 1.3% from the same period last year. By manufacturer, Hyundai recorded a 4.6% production increase and Kia a 4.3% increase, supporting the industry's overall production volume.

Overall, the automotive industry in the first quarter of 2026 is assessed to have established a stable growth foundation through the competitiveness of eco-friendly vehicles led by HYBE and the strong performance of its core SUV models, despite global economic uncertainty. The Ministry of Trade, Industry and Energy plans to focus on achieving its annual export and production targets, based on expectations of global interest rate cuts in the second half of the year and the impact of new vehicle launches.

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*This content was translated by AI.