EV market gets jolt from Iran war, rising nearly 140 percent on year

Electric vehicles are seen at a charging station in Seoul on April 29. [YONHAP]

 

Surging oil prices driven by the prolonged Iran war fueled explosive growth in Korea’s electric vehicle market last month.

    

Domestic automobile sales reached 151,693 vehicles in April, up 0.7 percent from a year earlier, the Ministry of Trade, Industry and Resources announced on Wednesday.

 


 

Despite the slight overall increase, EVs led sales by vehicle type.

 

EV sales in April soared 139.7 percent on year to 38,927 units. Hybrid vehicle sales — which had long dominated the environmentally friendly vehicle market — slipped 1.9 percent to 50,872 units.

 

“High oil prices caused by the Iran War and the implementation of the weekday driving restriction system significantly boosted demand for electric vehicles,” the Industry Ministry explained.

    

Imported brands also expanded their presence amid the EV boom.

 

Tesla ranked third in domestic vehicle sales behind Hyundai Motor and Kia. Chinese EV maker BYD placed eighth.

 

BYD’s sales have tripled within a year. The company sold 1,664 vehicles in April, up from 543 vehicles on year.

 

In model-specific rankings, the Kia Sorento topped domestic sales with 12,078 units sold, followed by the Tesla Model Y with 9,328 units. The Hyundai Grandeur, Hyundai Sonata and Hyundai Avante followed.

 

A Tesla EV powers up at a charging station in Seoul on Sept. 20, 2023. [YONHAP]

 

Automobile exports, however, slowed due to U.S. tariffs and rising risks tied to the Middle East conflict.

 

Automobile exports totaled $6.17 billion in April, down 5.5 percent from a year earlier, while export volume slipped 0.8 percent to 244,990 vehicles.

 

By region, exports to the United States fell 5.3 percent, while exports to the European Union dropped 13.1 percent. Exports to the Middle East and Asia also declined sharply, falling 38.7 percent and 31.7 percent, respectively.

 

Exports to Latin America and Oceania, however, rose 23.7 percent and 20.1 percent, respectively.

 

Green vehicles continued to support exports despite the broader slowdown.

 

Exports of environmentally friendly vehicles rose 22.8 percent on year to 90,508 units in April. Hybrid vehicle exports increased 24.5 percent to 58,046 units, while EV exports jumped 42.6 percent to 30,198 units.

 

Exports of plug-in hybrid electric vehicles, however, plunged 61.7 percent.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

BY JEONG JAE-HONG [[email protected]]