Korean car exports are trending down for the first time in 5 years
SEOUL, December 6 (WAM) – Sources in the South Korean automotive industry expected today that the country’s car exports will decline in 2025 for the first time in five years, due to increased production.
External US tariffs on imports.
The Korean Automobile and Transport Association (KAMA) estimated car exports this year at between 2.71 million and 2.72 million units, a decrease of between 2.3% and 2.6% compared to 2.78 million units the previous year.
The sources added that if expectations hold, this will be the first annual decline since 2020, when the “Covid-19” pandemic disrupted global car exports.
Car exports fell to 1.88 million units in 2020 compared to 2.4 million units the previous year, then recovered steadily, rising from 2.04 million units in 2021 to 2.76 million units in 2023, according to association data.
The expected decline this year is mainly due to weak shipments to the United States, the largest overseas market for Korean auto companies.
During the period from January to October, South Korea exported 2.25 million cars, and it is expected that about 460,000 units will be shipped in the last two months of this year.
Exports to the United States in the first ten months accounted for 49% of the total, and decreased by 7.9% year-on-year to 1.1 million units.
This decline came in the wake of Hyundai Motor Group’s launch in October of its factory dedicated to electric cars in the United States.
The group plans to increase the factory’s annual production capacity from 300,000 to 500,000 units to meet local demand.
Although the US government recently reduced customs duties on Korean cars from 25% to 15%, industry officials say that
It is expected that the burdens of customs duties will affect exports to the American market.
An industry official said: “If Hyundai Motor Group raises retail prices in the United States to maintain profitability, domestic demand for…
Hyundai and Kia cars, leading to a further decline in exports.”
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