South Korea’s Car Exports Rise Slightly In March Amid Rising Demand In Asia, But US Shipments Drop

South Korea’s car exports showed a modest increase in March compared to the previous year, fueled by growing demand from Asian nations.

However, shipments to the United States saw a significant decline, likely due to the looming impact of US tariffs on auto imports, according to data released on Tuesday.

In March, the value of South Korea’s automobile exports reached US$6.24 billion, reflecting a 1.2 percent increase from a year earlier.

This marked the second consecutive month of growth and represented the second-highest export value for any March, the Ministry of Trade, Industry, and Energy reported.

However, in terms of volume, exports dropped 2.4 percent year-on-year to 240,874 vehicles. This decline was offset by the strong growth in export value.

Eco-Friendly Car Exports Show Mixed Results

The export value of eco-friendly cars saw a slight dip, falling 3.1 percent year-on-year to $2.02 billion in March.

Nevertheless, the volume of eco-friendly car sales rose by 5.8 percent to 68,760 units. Among these, 41,969 units were hybrid models, while 20,757 were electric vehicles (EVs).

The decline in exports to North America stood out, with overall shipments to the region dropping 8.4 percent to $3.27 billion.

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A significant contributor to this fall was the 10.8 percent drop in shipments to the United States, which totaled $2.78 billion.

In contrast, exports to Asia surged by an impressive 61.8 percent, reaching $660 million, while shipments to the Middle East rose 21.2 percent to $490 million.

However, exports to the European Union decreased by 3 percent to $780 million.

Domestic Car Sales And Production

Domestic sales of cars also showed a positive trend, increasing 2.4 percent year-on-year to 149,512 units in March.

Additionally, domestic production rose by 1.5 percent, reaching 370,836 units.

In the first quarter of 2025, South Korea’s overall car exports experienced a slight downturn, with export value declining by 1.3 percent and sales volume falling by 2.2 percent compared to the previous year.

The ministry attributed these declines to fewer working days in the first quarter and a high base effect, as exports had reached an all-time high during the same period in 2024.

Impact Of US Tariffs And Government Support

South Korea’s auto industry is now facing the potential impact of a 25 percent tariff on imported cars, which came into effect on April 3 under the Trump administration.

In response, the South Korean government has pledged to closely monitor the situation and provide swift support to the industry.

To mitigate the impact, the government plans to inject an additional 2 trillion won ($1.35 billion) in liquidity, supplementing the 13 trillion won previously allocated for policy financing.

Furthermore, it will consider measures to boost the domestic market, including expanding subsidies for electric vehicles (EVs) and extending tax breaks for new car purchases.

Efforts will also be made to diversify export destinations in response to the changing global trade landscape.

The South Korean government’s proactive measures aim to cushion the auto industry from external challenges and maintain its competitive edge in the global market.