Seoul, May 20
South Korea's automobile exports declined slightly in April from a year earlier, largely due to a sharp drop in shipments to the United States following Washington's imposition of steep tariffs on foreign-made cars, government data showed on Tuesday.
The value of outbound shipments of automobiles came to US$6.53 billion last month, down 3.8 percent from a year earlier, according to data from the Ministry of Trade, Industry and Energy.
By region, exports to North America tumbled 17.8 percent on-year to $3.36 billion, with shipments to the U.S. plunging 19.6 percent to $2.89 billion, reports Yonhap news agency.
In contrast, exports to the European Union surged 26.7 percent to $953 million, driven by robust sales of Kia Corp.'s EV3 and Hyundai Motor Co.'s Casper Electric.
On the domestic front, car sales increased for the third consecutive month in April, growing 6.7 percent from a year earlier.
The rise was led by strong demand for electric vehicles (EVs) and hybrid models, which saw sales growth of 50.3 percent and 29.9 percent on-year, respectively.
EVs and hybrids accounted for 46 percent of the total 151,000 vehicles sold in the domestic market last month.
The South Korean auto industry is closely monitoring the impact of the 25 percent tariff imposed by the Donald Trump administration, which took effect on April 3.
In response, the government announced plans to inject an additional 2 trillion won ($1.43 billion) in liquidity into the industry, on top of the previously pledged 13 trillion won in policy financing.
Seoul also vowed to consider a range of measures to bolster the domestic automotive sector, including expanded subsidies for EV purchases, extended tax incentives for new vehicle buyers and efforts to diversify export markets.
Meanwhile, South Korea and the U.S. are scheduled to begin working-level consultations later this week to draw up a comprehensive agreement by early July. The talks will cover the new U.S. tariff regime, as well as broader economic and industrial cooperation.
— IANS
Reader Comments
Interesting to see how US tariffs are reshaping global auto trade. Indian automakers should take note - we must diversify our export markets too instead of relying too much on any single country. Europe seems to be absorbing some of Korea's redirected exports.
The EV growth in Korea's domestic market is impressive! 🇮🇳 should learn from their hybrid strategy - 46% green vehicles is no joke. Our FAME subsidies need to be more consistent to achieve such penetration. #ElectricMobility
Protectionism hurts everyone in the long run. The US tariffs may benefit American automakers temporarily, but consumers lose out on better options. Hope India doesn't follow this path - our auto sector thrives on healthy competition.
Korean brands like Hyundai-Kia are doing so well in India. Maybe this US tariff situation will make them focus more on our market? Could be good for Indian consumers if they bring more models here 🤞
The 2 trillion won bailout shows how crucial auto sector is for Korea's economy. India should similarly prioritize manufacturing - we have the potential to be global auto hub if policies remain stable. Make in India needs more push!
While the US-Korea trade tensions are concerning, the silver lining is their rapid EV adoption. Indian cities desperately need this transition to combat pollution. Hope our government studies Korea's subsidy models carefully.
Here are 6 diverse Indian perspective comments on the South Korean auto export decline news: We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.