According to Yonhap News Agency, the Korea Automobile Manufacturers Association (KAMA) announced on June 23 that, driven by strong demand for eco-friendly and SUV models, South Korea's auto exports are expected to reach a record high in 2024.
Based on KAMA's forecast, South Korea's auto exports are projected to increase by 5.4% year-on-year to $74.7 billion this year, setting a new record. Including auto parts exports, the total is expected to reach $98 billion.
KAMA stated in its report, "Strong demand in the North American market, coupled with the increasing popularity of Korean automakers' SUVs and hybrid models, is expected to lead to robust growth in auto exports in the second half of the year." KAMA President Kang Nam-hoon commented, "Amid geopolitical instability, maintaining stable labor relations, introducing flexible work systems, and implementing policies that ensure stable delivery are crucial to sustaining the growth momentum in export business."
On June 20, the Ministry of Trade, Industry and Energy (MOTIE) released the "Automotive Industry Trends Report for May 2024," indicating that in May, South Korea's auto exports amounted to $6.49 billion, a 4.8% year-on-year increase, marking the highest export figure for the month of May. In the first five months of this year, South Korea's cumulative auto exports reached $30.81 billion, a 4.7% increase compared to the same period last year, also setting a new record.
Last month, the total export value of eco-friendly vehicles, including hybrid cars, was $2.18 billion, a 3.7% year-on-year increase, surpassing the $2 billion mark for three consecutive months. Among them, hybrid car exports totaled $1.03 billion, a substantial 48.2% year-on-year increase.
However, KAMA's forecast also indicated that due to weak domestic demand and the high base effect, domestic auto sales in South Korea are expected to decline by 5.9% year-on-year to 1.65 million units in 2024. This year, domestic production is expected to slightly decrease by 0.1% to 4.24 million units.
