South Korea’s Auto Exports Set to Achieve Record Highs in 2024

SEOUL – South Korea’s automotive industry is expected to hit a historic peak in exports this year, buoyed by robust global demand for eco-friendly and sport utility vehicles.

According to Philippines News Agency, the nation’s car exports are projected to increase by 5.4 percent to an unprecedented USD 74.7 billion in 2024. This figure could surge to USD 98 billion when combined with anticipated sales of automotive components in international markets. During the first five months of 2024, car exports have already marked a 4.7 percent rise to USD 30.8 billion, the highest for any similar period recorded, as per government data.

KAMA’s report highlights that the automotive export sector is poised for strong growth in the latter half of the year. This optimism is fueled by vigorous demand from the North American market and increasing popularity of Korean SUVs and hybrid vehicles. KAMA chief Kang Nam-hoon emphasized the necessity for maintaining a stable labor-management relationship, adopting flexible working systems, and obtaining governmental policy support to navigate geopolitical challenges and sustain export growth.

Despite the positive forecast for exports, domestic car sales are anticipated to decline by 5.9 percent to 1.65 million units in 2024 due to subdued local demand and a high comparison base from previous years. Moreover, domestic car production is expected to slightly decrease by 0.1 percent to 4.24 million units this year.