South Korea’s auto exports hit a record high in the first half of the year, thanks to climbing sales of high-margin hybrid cars and SUVs, according to Korea JoongAng Daily.
According to the Ministry of Industry, Trade and Resources (MITR) and the Korea Trade Association (KITA), South Korea’s auto exports were worth $37 billion from January to June this year, up 3.8 per cent from $35.7 billion in the same period last year. Among them, auto exports to the United States rose 30 per cent year-on-year to $18.5 billion, accounting for 49.9 per cent of the country’s total auto exports, making the United States South Korea’s largest auto export partner; exports to the European Union market decreased by 30 per cent; and exports to the Middle East fell 18.7 per cent.
By power type, Korea’s exports of electric vehicles fell by 17.6 per cent in the first half of the year as global demand for electric vehicles stagnated; exports of hybrid vehicles and internal combustion engine vehicles (such as petrol and diesel-powered vehicles) increased. Among them, the export value of hybrid cars rose 19.5 per cent year-on-year, while the export value of internal combustion engine cars rose 7.2 per cent year-on-year.
In addition, Korean experts are bullish on the country’s auto export prospects for the second half of the year. The Korea Automobile & Mobility Association (KAMMA) forecasts that South Korea’s auto exports will reach a record high of $74.7 billion in 2024, up 5.4% year-on-year; if auto parts are taken into account, South Korea’s auto exports will reach $98 billion this year, and this is mainly thanks to the “recovering sales in Europe” and “the launch of new electric car models.”
But experts have also warned that the upcoming U.S. election could pose a threat to South Korean manufacturers, especially if Trump is re-elected. Biden has pushed hard for policies such as the Inflation Reduction Act during his tenure, but Trump could reduce incentives for clean energy and scale back tax credits.