Lack of vehicle semiconductor, South Korea's output hit a record low in the third quarter

According to the Yonhap News agency, data released by the Korea Automobile Manufacturers Association (KAMA) on The 17th showed that in the third quarter of this year, domestic vehicle manufacturers produced a total of 761,975 cars, down 20.9% year-on-year, hitting a 13-year low. Korean automakers produced 908,848 and 905,699 units in the first and second quarters of this year, respectively, but the third quarter saw production fall below 800,000 units due to a shortage of semiconductors in the second half of the year due to the spread of the virus in Southeast Asia.

The industry had expected the shortage of semiconductor chips to be alleviated in September and October, but there is no sign that the shortage of semiconductor chips will be alleviated due to the suspension of factories in Southeast Asia by global automotive semiconductor companies due to the spread of the Delta mutant strain.

By company, Hyundai Motor produced 350,209 units in the third quarter, down 15.8 percent from the same period last year. Kia produced 321,734 units, down 6.5 percent year-on-year. GM Korea suffered a cliff cut, producing 45,939 vehicles in the same period. Ssangyong Motor, which has started the sale process, produced 20,499 units, down 21.7 percent year-on-year. Renault Samsung, which has been less affected by the chip shortage, produced 33,760 units, up 7 per cent from a year earlier.

According to KAMA, production cuts in the vehicle industry are expected to continue in the fourth quarter as the supply shortage of automotive semiconductors is expected to continue until 2023.