Seoul: South Korea's automobile exports saw an increase from the previous year in June, driven by significant growth in shipments to Europe and Asia, which effectively counterbalanced a reduction in exports to the United States due to US tariffs. The data, released on Thursday, highlighted this trend.
According to Qatar News Agency, the value of South Korea's outbound automobile shipments rose by 2.3% on-year, reaching US$6.3 billion in June. This figure marks the highest monthly value ever recorded for June. However, in terms of volume, there was an 8.8% decrease, with 244,427 vehicles exported.
The Ministry of Trade, Industry and Energy attributed the increase in export value, despite the drop in volume, to a rise in shipments of high value-added vehicles, particularly sport utility vehicles (SUVs) and electric vehicles (EVs). These categories helped boost revenue even as the total number of vehicles exported declined.
Exports to the United States experienced a continued downturn, falling for the fourth straight month with a 16% decrease on-year to $2.7 billion. This decline coincided with the US's imposition of 25% tariffs on all imported vehicles and auto parts since April, impacting South Korea's automotive trade with its key market.
Meanwhile, shipments to the European Union and Asia surged significantly, with increases of 32.6% and 35.6% on-year, reaching $770 million and $620 million, respectively. These robust performances partly mitigated the decline in exports to the US.
Additionally, vehicle exports to the Middle East showed positive growth, increasing by 11.9% to $520 million, further contributing to the overall rise in South Korea's automobile export value for the month.