South Korean car production fell 20.9% in the third quarter to a 13-year low due to chip shortage

Published: Oct 18, 2021 11:42 (GMT+8)

South Korean automakers produced 761975 vehicles in the third quarter of this year, down 20.9% from a year earlier and the lowest in nearly 13 years, according to data released on Sunday by the Korea Automobile Industry Association ((KAMA)).

South Korean car production increased year-on-year in the first and second quarters of this year, reaching 908848 and 905699 respectively, but due to the spread of the epidemic in Southeast Asia in the second half of this year, the problem of insufficient supply of vehicle semiconductors further intensified, resulting in production of less than 800000 vehicles in the third quarter.

The industry had expected the shortage of semiconductor chips to be alleviated from September to October, but the factories of global automotive semiconductor companies in Southeast Asia were shut down because of the Delta mutant strain, and the semiconductor shortage problem showed no sign of easing.

In terms of enterprises, Hyundai Motor (41.85,-0.90,-2.11%) produced 350209 vehicles in the third quarter, down 15.8% from the same period last year; Kia produced 321734 vehicles, down 6.5% from the same period last year; GM's South Korean subsidiary suffered a cliff cut in production, producing only 45939 vehicles; Ssangyong, which has started the sale process, produced 20499 vehicles, down 21.7% from the same period last year. In addition, Renault (7.655, 0.24, 3.17%), which was less affected by the chip shortage, produced 33760 vehicles, an increase of 7% over the same period last year.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
[SMM Chromium Flash] Global Steel Demand Forecast Turns Flat in 2026 as China Weakens, Recovery Expected in 2027
Oct 16, 2026 22:28 (GMT+8)
[SMM Chromium Flash] Global Steel Demand Forecast Turns Flat in 2026 as China Weakens, Recovery Expected in 2027
Read More
[SMM Chromium Flash] Global Steel Demand Forecast Turns Flat in 2026 as China Weakens, Recovery Expected in 2027
[SMM Chromium Flash] Global Steel Demand Forecast Turns Flat in 2026 as China Weakens, Recovery Expected in 2027
The World Steel Association (worldsteel) revised its global steel demand outlook on 12 October, forecasting demand to remain broadly unchanged at 1.722 billion tonnes in 2026, before increasing by 1.7% to 1.752 billion tonnes in 2027. The downgrade largely reflects weaker-than-expected demand in China, where steel demand is projected to contract by 2.0% in 2026 and a further 1.0% in 2027. Outside China, demand is expected to grow by 1.5% in 2026 and accelerate to 4.0% in 2027. For the chromium market, the subdued global steel outlook suggests that a broad-based recovery in steel-related demand may take longer to materialize, although prospects vary by region. India’s steel demand is forecast to grow by 7.9% in 2026, while demand in the United States is projected to increase by 2.0%. These divergent regional trends provide important context for chrome ore and ferrochrome producers assessing end-market conditions. However, the forecast covers total steel demand rather than stainless steel specifically, so it does not directly quantify future chromium consumption.
Oct 16, 2026 22:28 (GMT+8)
[SMM Chromium Flash] South Africa’s August Chrome Ore Exports Fall 11% as Ferrochrome Shipments Rebound 20%​
Oct 16, 2026 22:13 (GMT+8)
[SMM Chromium Flash] South Africa’s August Chrome Ore Exports Fall 11% as Ferrochrome Shipments Rebound 20%​
Read More
[SMM Chromium Flash] South Africa’s August Chrome Ore Exports Fall 11% as Ferrochrome Shipments Rebound 20%​
[SMM Chromium Flash] South Africa’s August Chrome Ore Exports Fall 11% as Ferrochrome Shipments Rebound 20%​
South Africa’s chrome ore exports fell 10.75% month-on-month to 2.36 million tonnes in August 2026, while high-carbon ferrochrome exports increased 20.0% to 117,180 tonnes, highlighting diverging trends in the country’s chromium trade. China remained the leading destination for chrome ore, receiving 1.67 million tonnes, or 70.8% of total shipments, despite a 6.09% monthly decline. Ferrochrome exports, meanwhile, were supported by stronger shipments to North America, with Canada receiving 26,373 tonnes and the United States 26,029 tonnes, together accounting for 44.7% of South Africa’s ferrochrome exports.​ The contrasting movements point to softer overseas demand for raw chrome ore alongside a recovery in ferrochrome shipments, particularly to North America. However, the monthly rebound in ferrochrome exports does not yet establish a sustained recovery in domestic smelting, while China’s dominant share of ore exports leaves South African shipments exposed to changes in Chinese purchasing activity.
Oct 16, 2026 22:13 (GMT+8)
[SMM Chromium Week Review] Export Flows Rebound as China's Port Stocks Rise and African Prices Diverge
Oct 16, 2026 21:43 (GMT+8)
[SMM Chromium Week Review] Export Flows Rebound as China's Port Stocks Rise and African Prices Diverge
Read More
[SMM Chromium Week Review] Export Flows Rebound as China's Port Stocks Rise and African Prices Diverge
[SMM Chromium Week Review] Export Flows Rebound as China's Port Stocks Rise and African Prices Diverge
Published: Oct 16, 2026.
Oct 16, 2026 21:43 (GMT+8)