Seoul: The unit price of South Korea's exported vehicles experienced a decline last year, marking the first such drop in eight years. This change comes amidst a continued slowdown in electric vehicle (EV) sales, as revealed by recent data.

According to Yonhap News Agency, South Korea exported 2.78 million cars in the previous year, totaling a value of US$64.1 billion. The average export price per vehicle was recorded at $23,048, which is a decrease of $221 compared to the year prior. This marks the first on-year reduction since 2016, when the unit price was $14,264.

In recent years, the unit price had consistently increased, reaching a peak of $23,369 in 2023, driven by the demand for higher-priced EVs. However, the current decline is attributed to a reduction in global demand for eco-friendly vehicles during what is referred to as the "EV chasm," a transitional period before the widespread adoption of EVs.

South Korea's exports of eco-friendly vehicles had been steadily rising from $4.21 billion in 2018 to $23.48 billion in 2023, but saw a decrease to $22.43 billion last year. Notably, international sales of EVs fell by 26.6 percent on-year, amounting to 254,000 units.

An industry insider commented on the situation, stating, "The rise in the unit price of vehicle exports in recent years has been largely influenced by rising demand for eco-friendly cars, mainly EVs. The EV Chasm, combined with production disruptions caused by heavy snowfall in November last year, led to a decline in EV exports."