How are Auto Exports in South Korea Performing Amid US Tariffs?
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Synopsis
South Korea's auto exports continue to thrive, rising 8.6% in August, despite challenges posed by US tariffs. The significant demand for electric vehicles in Europe drives this growth. Discover the full impact of these trends on the automotive industry and the impressive performance of eco-friendly vehicles.
Key Takeaways
- South Korea's auto exports rose by 8.6% in August.
- Strong demand for electric vehicles in Europe is a key driver.
- Exports to the European Union increased by 54%.
- Eco-friendly vehicle exports grew by 26.6% year-on-year.
- Domestic car production climbed by 7.1%.
Seoul, Sep 16 (NationPress) In August, South Korea's automobile exports surged by 8.6% compared to the previous year, despite the impact of US tariffs. This growth is attributed to an increased demand for electric vehicles (EVs) in Europe, as highlighted by data released on Tuesday.
The total value of car exports reached US$5.5 billion last month, marking the highest amount recorded for any August, as per the Ministry of Trade, Industry and Energy.
On a volume basis, exports increased by 5.5% year-on-year, totaling 200,317 vehicles in August. The cumulative value of auto exports from January to August reached a record $47.7 billion, according to Yonhap news agency.
According to the ministry, demand for South Korean vehicles rose in every region except North America, where cars are currently subjected to 25% tariffs imposed by the U.S. administration.
Exports to the European Union saw a remarkable surge of 54% year-on-year, amounting to $792 million last month, with shipments to Germany and the Netherlands increasing by 118.7% and 110.3%, respectively.
Furthermore, exports to Britain rose by 115.7% year-on-year to $250 million, while shipments to Turkey climbed 96.1% to $100 million.
Shipments to Asia increased by 9.3% to $591 million, with the Middle East seeing a 9.8% rise to $369 million. Meanwhile, exports to Oceania jumped by 20.1% reaching $344 million.
However, shipments to North America fell by 8.3% year-on-year to $2.55 billion in August, with exports to the U.S. dropping by 15.2% to $2.1 billion.
In terms of vehicle types, the export of eco-friendly vehicles, which includes EVs, hybrids, and hydrogen EVs, grew by 26.6% year-on-year, totaling 69,000 vehicles in August.
Particularly, the export of EVs experienced a substantial rise of 78.4%, reaching 23,000 vehicles, driven by the global popularity of Kia's EV3 model and Hyundai Motor's Casper Electric model, known as the Inster in international markets.
Domestically, automobile sales also rose by 8.3% year-on-year, reaching 139,000 units, marking the seventh consecutive month of growth.
Notably, eco-friendly vehicles comprised over half of the vehicles sold in South Korea in August, reflecting a 36.1% increase from the previous year, as reported by the ministry.
In August, domestic car production climbed by 7.1% to 321,000 units, supported by the rise in both exports and local sales.
Point of View
Particularly in the electric vehicle segment, showcases the country's adaptability in a challenging market environment. While US tariffs pose hurdles, the demand for eco-friendly cars in Europe presents a significant opportunity for growth. This trend reflects a broader shift in consumer preferences towards sustainable transportation.
NationPress
09/11/2025
Frequently Asked Questions
What factors contributed to the increase in South Korea's car exports?
The increase is primarily due to strong demand for electric vehicles in Europe, despite the challenges posed by US tariffs.
How much did electric vehicle exports increase?
Electric vehicle exports surged by 78.4%, reaching 23,000 vehicles in August.
What was the total value of South Korea's car exports in August?
The total value of car exports in August was US$5.5 billion.
Which regions saw the highest demand for Korean cars?
The European Union experienced the highest demand, with exports rising by 54% year-on-year.
How did North American exports perform?
Exports to North America decreased by 8.3% year-on-year, amounting to $2.55 billion.
