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Key Points

South Korean automotive exports have demonstrated remarkable resilience in August, growing 8.6% despite challenging US trade policies. The surge is primarily driven by strong electric vehicle demand in European markets, with countries like Germany and the Netherlands showing significant import increases. While North American shipments declined, the overall export value reached a record $5.5 billion, highlighting the sector's global competitiveness. Domestic production and sales also reflected this positive trend, with eco-friendly vehicles accounting for over half of local automobile sales.

Key Points: Korea Auto Exports Surge 8.6% Despite US Tariffs

  • Korea's auto exports climb despite US tariff pressures
  • European market drives significant growth in vehicle shipments
  • Electric vehicle sales surge 78.4% internationally
  • Domestic auto sales rise for seventh consecutive month
2 min read

Auto exports grow over 8 pc in South Korea in Aug despite US tariffs

South Korean car exports grow with robust EV demand in Europe, reaching record $5.5B in August despite US trade challenges.

"Exports of eco-friendly cars expanded 26.6% from a year earlier - Ministry of Trade, Industry and Energy"

Seoul, Sep 16

South Korea's car exports increased 8.6 per cent from a year earlier in August despite US tariffs, thanks to robust demand for electric vehicles (EVs) in Europe, data showed on Tuesday.

The value of outbound shipments of automobiles came to US$5.5 billion last month, the highest figure for any August, according to the data from the Ministry of Trade, Industry and Energy.

In terms of volume, exports gained 5.5 percent on-year to 200,317 vehicles last month. The value of accumulated auto exports from January to August reached an all-time high of $47.7 billion, reports Yonhap news agency.

The ministry said demand for Korean cars went up in all regions, except for North America, where Korean cars are currently subject to 25 per cent tariffs by U.S. President Donald Trump's administration.

Exports to the European Union surged 54 per cent on-year to $792 million last month, with shipments to Germany and the Netherlands soaring 118.7 per cent and 110.3 per cent, respectively.

Exports to Britain shot up 115.7 percent on-year to $250 million, and shipments to Turkey spiked 96.1 percent to $100 million.

Shipments to Asia went up 9.3 percent to $591 million, and those to the Middle East rose 9.8 percent to $369 million. Exports to Oceania jumped 20.1 percent to $344 million.

Shipments to North America, however, shrank 8.3 percent on-year to $2.55 billion in August, with exports to the U.S. dipping 15.2 percent to $2.1 billion.

By type, exports of eco-friendly cars, such as EVs, hybrid cars and hydrogen EVs, expanded 26.6 percent from a year earlier to 69,000 vehicles last month.

In particular, shipments of EVs surged 78.4 percent to 23,000 vehicles amid the global popularity of Kia's EV3 model and Hyundai Motor's Casper Electric model, sold as the Inster in overseas markets.

At home, sales of automobiles rose 8.3 percent on-year to 139,000 units, up for the seventh consecutive month.

Eco-friendly vehicles accounted for more than half of vehicles sold in South Korea in August, marking a 36.1 percent increase from a year earlier, according to the ministry.

In August, the domestic production of cars climbed 7.1 percent to 321,000 units, backed by the expansion of exports and domestic sales.

- IANS

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Reader Comments

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Priya S
The EV revolution is real! 78.4% growth in electric vehicle exports is phenomenal. Hope Indian companies like Tata and Mahindra are paying attention. We need more affordable EV options in India too.
A
Aditya G
While Korean success is commendable, I wish our government would create better policies for Indian auto exports. We have the potential but lack the right support system. Make in India should mean export from India too!
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Sarah B
The numbers speak for themselves - $47.7 billion in just 8 months! This shows how global trade dynamics are shifting. European markets are embracing Korean EVs while US protectionism is backfiring. Interesting times for auto industry.
Karthik V
Hyundai and Kia are doing amazing work. Their EV models are really popular globally. Hope they bring more affordable electric options to India soon. The Casper Electric looks perfect for Indian roads!
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Michael C
The 25% US tariffs actually helped Korean companies diversify rather than hurt them. Sometimes trade barriers push innovation and market expansion. Great case study for business schools!

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