Daijiworld Media Network - Seoul

Seoul, Jan 26 (IANS): South Korea's exported vehicle prices fell for the first time in eight years in 2024, with a significant downturn attributed to a slowdown in electric vehicle (EV) sales, according to data from the Korea Automobile Manufacturers Association (KAMA).

The country exported 2.78 million vehicles worth $64.1 billion last year, with the average price per unit dropping by $221 to $23,048. This marks the first decline since 2016, when the unit price was $14,264. Over the past years, the price had been steadily rising, peaking at $23,369 in 2023 due to increased demand for high-priced EVs.

The decline is linked to the "EV chasm," a phase in the transition before widespread EV adoption, and a drop in global demand for eco-friendly cars. South Korea's exports of eco-friendly vehicles, including EVs, which had been climbing for years, fell from $23.48 billion in 2023 to $22.43 billion in 2024. Specifically, overseas EV sales plummeted by 26.6 percent to 254,000 units.

An industry insider noted that while EV demand had previously driven up vehicle prices, the downturn in EV exports, combined with production delays caused by severe snowfall in November 2024, contributed to the decline.

In response to the slowdown, South Korea's government announced plans to invest 1.5 trillion won ($1.02 billion) this year to boost domestic EV sales, addressing concerns over safety and charging infrastructure. Despite these efforts, domestic EV sales fell by 9.7 percent year-on-year to 147,000 units, marking a second consecutive year of decline.