South Korea’s auto industry has achieved a momentous milestone, with export values reaching $37.01 billion in the first half of the year. This marks a 3.8% increase from the same period last year, as reported by the Ministry of Trade, Industry and Energy and the Korea International Trade Association on July 7.
This new record surpasses the previous high of $35.65 billion set last year. The surge is driven by robust demand for high-value vehicles, including electric vehicles (EVs), hybrid cars, and SUVs, particularly in markets such as North America and Europe.
Exports to the United States saw a remarkable increase of 29.8% from the same period last year, totaling $18.45 billion and making up nearly half (49.9%) of South Korea’s total automobile exports for the first half of the year. Meanwhile, exports to the European Union (EU) dropped by 30.0% to $3.94 billion, with the Middle East and Latin America experiencing decreases of 18.7% and 8.3%, respectively.
Despite a 17.5% decline in electric vehicle exports to $7.02 billion, overall growth was fueled by a 19.5% rise in hybrid car exports and a 7.2% increase in internal combustion engine vehicle exports. This diversification has cushioned the impact of the temporary slowdown in the global electric vehicle market, often called the ‘chasm’. Notably, electric vehicle exports to the U.S. have already surpassed last year’s first-half figures, showing resilience against initial concerns over the U.S. Inflation Reduction Act (IRA).
This strong first-half performance has heightened expectations for meeting the government’s annual automobile export target of $75 billion. The Korea Automobile Manufacturers Association (KAMA) predicts that the total automobile export value for this year will reach $74.7 billion, with second-half exports projected to grow by 6.5% compared to the same period last year, totaling $37.5 billion.
TRADE WORLD | Natural Rubber Shortage Threatens Tire Production in India, ATMA Warns
