South Koreas Auto Exports Surge Despite US Tariffs: Europe And Asia Drive Growth

South Korean auto exports defy US tariff pressure, posting sharp growth in 2024. Demand surges in Europe, Southeast Asia, and the Middle East, led by EVs and hybrid vehicle sales.

Exports to the United States fell for the fourth consecutive month, dropping 16 percent on-year to $2.7 billion, according to the report

Source : somnath chatterjee

South Korea's automobile exports rose from a year earlier in June as a sharp rise in shipments to Europe and Asia more than offset a decline in shipments to the United States caused by US tariffs, data showed on Thursday.

The value of outbound shipments of automobiles grew 2.3 percent on-year to US$6.3 billion in June, marking the highest monthly figure in history for any June, according to data from the Ministry of Trade, Industry and Energy, reports Yonhap news agency.

In terms of volume, exports fell 8.8 percent on-year to 244,427 vehicles. The ministry attributed the rise in value despite a drop in volume to an increase in shipments of high value-added vehicles, such as sport utility vehicles (SUVs) and electric vehicles (EVs).

Exports to the United States fell for the fourth consecutive month, dropping 16 percent on-year to $2.7 billion, according to the report.

The U.S. began imposing 25 percent tariffs on all imported vehicles and auto parts in April.

Shipments to the European Union and Asia surged 32.6 percent and 35.6 percent on-year to $770 million and $620 million, respectively, partly offsetting the decline in exports to the U.S.

Vehicle exports to the Middle East grew 11.9 percent to $520 million, said the report.

Notable growth was seen particularly in Germany and the Netherlands, where exports nearly doubled, the ministry said.

At home, sales of automobiles rose 5.8 percent on-year to 145,843 units in June. Domestic production remained flat at 353,233 units.

More than 72,000 units of eco-friendly vehicles were sold in South Korea in June, up 36 percent from a year earlier, according to the ministry.

Meanwhile, Seoul shares pared earlier losses on late Thursday morning, supported by gains in technology and auto stocks, though investors remained cautious over U.S. tariff policies.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 9.85 points, or 0.31 percent, to 3,176.53 as of 11:20 a.m. The index had opened slightly lower, bucking overnight gains on Wall Street.

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)