According to Korea JoongAng Daily, South Korea's automotive export value reached a new high in the first half of this year, driven by the rising sales of high-profit hybrid vehicles and SUVs.
Data from South Korea's Ministry of Trade, Industry and Energy and the Korea International Trade Association (KITA) shows that from January to June this year, South Korea's automotive export value was $37 billion, marking a 3.8% increase from $35.7 billion during the same period last year. Exports to the United States saw a significant year-on-year increase of 30%, reaching $18.5 billion, which accounts for 49.9% of the country's total automotive exports, making the U.S. South Korea's largest automotive export partner. Conversely, exports to the European Union decreased by 30%, and exports to the Middle East fell by 18.7%.
By power type, South Korea's electric vehicle exports in the first half of this year decreased by 17.6% due to stagnant global demand for electric vehicles. However, exports of hybrid vehicles and internal combustion engine vehicles (such as gasoline and diesel-powered cars) increased. Notably, hybrid vehicle exports grew by 19.5% year-on-year, and internal combustion engine vehicle exports rose by 7.2% year-on-year.
Additionally, South Korean experts are optimistic about the prospects for the country's automotive exports in the second half of the year. The Korea Automobile & Mobility Association predicts that South Korea's automotive export value will reach $74.7 billion in 2024, a 5.4% year-on-year increase, setting a new record. Including auto parts, this year's automotive export value is expected to reach $98 billion, primarily due to the "recovery in European sales" and the "introduction of new electric vehicle models."
However, experts also warn that the upcoming U.S. presidential election could pose a threat to South Korean manufacturers, especially if Trump is re-elected. During his term, Biden has strongly promoted policies such as the Inflation Reduction Act, but Trump might reduce incentives for clean energy and scale back tax credits.
