Average unit price for exported Korean cars hits all-time high

The average unit price for Korean car exports hit an all-time high of $21,276 last year, thanks to the popularity of ecofriendly cars and recreational vehicles, data from the Korea Automobile Manufacturers Association showed Sunday.

The price is a 40.5 percent jump from $15,147 in 2017. Last month, the average unit price reached $22,515.

In 2022, the auto export volume surged on-year by 12.7 percent to 2.3 million units, while the total export price jumped 18 percent to $48.9 billion. The figure indicated both strong quantitative and qualitative growth, sources said.

Industry insiders say last year’s price growth was largely driven by the surge in sales of recreational vehicles including sport utility vehicles, which are more profitable for carmakers than sedans.

RV exports increased by 14.4 percent to 1.6 million in 2022, taking up 74.2 percent of the total passenger car exports from 2017’s 56.8 percent.

Ecofriendly cars such as electric vehicles installed with pricey batteries and electronic components have bumped up the average unit price of exporting cars as well.

Last year, exports of Hyundai Motor Group’s flagship electric SUV Ioniq 5 spiked 65.1 percent to 71,380 units from a year earlier. Its smaller affiliate Kia exported 58,414 units of the electric-powered SUV EV6, posting a threefold increase.

Other EV lineups include Hyundai’s Ioniq 6, its premium brand Genesis’ GV60 and Kia’s electrified versions of Niro, Ray and Korando.

Kia’s EV9, an electric-powered large SUV, slated for launch late this year might extend profitable opportunities for Korea, if it garners traction worldwide amid the SUV boom, sources said. The car is expected to be priced between $60,000-$70,000.

Experts say the auto market is likely to lead the country’s exports, unlike the semiconductor industry, which is headed for a downturn as Samsung Electronics recently announced that it would cut chip production.

“Semiconductor companies have come out of the super cycle and are seeing a downtick, however, the car industry, spearheaded by Hyundai and Kia will be maintaining a stronger position in exports,” said Park Cheol-wan, a car engineering professor at Seojeong University.

Last month, auto exports skyrocketed 64.2 percent to $6.5 billion, surpassing the record-high figure of $5.6 billion in February, according to data from the Ministry of Trade, Industry and Energy.