How Did South Korea’s Auto Exports Surpass 8% Growth in July Despite US Tariffs?
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Synopsis
In July, South Korea’s automobile exports soared by over 8%, primarily due to a surge in shipments to Europe, offsetting a decline in U.S. exports caused by tariffs. This trend marks the second month of growth amidst fluctuating global trade dynamics, highlighting the resilience of South Korea’s automotive industry.
Key Takeaways
- South Korea's auto exports grew by 8.8 percent in July.
- Shipments to the European Union increased by 32.7 percent.
- U.S. exports declined for the fifth month due to tariffs.
- Eco-friendly vehicle exports rose by 17 percent.
- Domestic EV sales reached a new record of 26,000 units.
Seoul, Aug 19 (NationPress) South Korea's automobile exports have surged by over 8 percent compared to the previous year in July, driven by a significant rise in shipments to Europe that compensated for a downturn in exports to the United States attributed to Washington's tariff policies, as revealed by government data on Tuesday.
The total value of auto exports increased by 8.8 percent year-on-year, reaching $5.83 billion last month, marking the second straight month of growth, according to data from the Ministry of Trade, Industry and Energy, as reported by Yonhap news agency.
Unlike June, where export value rose despite a decrease in volume, July witnessed a boost in both metrics. The number of vehicles shipped abroad increased by 5.8 percent year-on-year to 212,000 units.
Exports to the U.S. have declined for the fifth consecutive month, falling by 4.6 percent year-on-year to $2.33 billion in July. This decline, however, has slowed significantly from a 16 percent drop in June.
The ongoing drop in shipments to the U.S. follows the imposition of a 25 percent tariff on all imported automobiles and auto parts by President Donald Trump's administration since April.
The ministry indicated that trade uncertainties have lessened somewhat as the U.S. has agreed to reduce tariffs on South Korean automobiles to 15 percent as part of a broader trade agreement finalized on July 30.
Conversely, shipments to the European Union skyrocketed by 32.7 percent year-on-year to $713 million last month, driven by robust demand for eco-friendly vehicles.
Outbound shipments of eco-friendly cars rose by 17 percent from the previous year, totaling 68,000 units. Notably, exports of electric vehicles (EVs), which had steadily declined since January 2024, rebounded in June and continued to improve in July.
In the domestic market, automobile sales increased by 4.6 percent year-on-year to 138,503 units in July. Domestic production also grew by 8.7 percent to 316,295 units.
Domestic sales of EVs reached 26,000 units in July, marking a significant 69.5 percent increase from the previous year and establishing a new monthly record. EVs accounted for 18.5 percent of total monthly auto sales, achieving the highest local market share ever.
Point of View
It is crucial to highlight that South Korea's automotive industry is not just surviving but thriving against the backdrop of global trade challenges. The growth in exports, particularly to Europe, demonstrates the sector's adaptability and commitment to innovation, especially in eco-friendly technologies, ensuring it remains competitive on the world stage.
NationPress
19/08/2025
Frequently Asked Questions
What contributed to the increase in South Korea's auto exports in July?
The rise in South Korea's auto exports in July was primarily due to a significant increase in shipments to Europe, which offset the decline in U.S. exports caused by tariffs.
How much did auto exports grow in July?
In July, South Korea's automobile exports grew by 8.8 percent compared to the previous year.
What impact did U.S. tariffs have on auto exports?
The U.S. tariffs led to a 4.6 percent decline in exports to the United States for the fifth consecutive month.
What is the trend in eco-friendly vehicle exports?
Outbound shipments of eco-friendly vehicles rose by 17 percent in July, indicating strong demand for these cars.
What was the performance of electric vehicle exports?
Exports of electric vehicles rebounded in July after a decline earlier in the year, reflecting a growing market for these vehicles.
