South Korea`s auto exports grow over 8 pc in July despite US tariffs
South Korea's automobile exports rose by more than 8 per cent from a year earlier in July thanks to a sharp increase in shipments to Europe that more than offset a decline in shipments to the United States caused by Washington's tariff scheme, government data showed on Tuesday.
The value of auto exports grew 8.8 percent on-year to $5.83 billion last month, marking the second consecutive month of growth, according to the data from the Ministry of Trade, Industry and Energy, reports Yonhap news agency.
While export value had increased in June despite a drop in export volume, July saw both figures rise. In July, the number of vehicles shipped overseas increased 5.8 percent on-year to 212,000 units.
Exports to the U.S. fell for the fifth consecutive month, dropping 4.6 percent on-year to $2.33 billion in July. However, the pace of decline sharply eased from a 16 percent fall in June.
The steady decline in shipments to the U.S. follows President Donald Trump's administration's imposition of a 25 percent tariff on all imported automobiles and auto parts since April.
The ministry noted that trade uncertainties have somewhat eased as the U.S. agreed to lower tariffs on South Korean automobiles to 15 percent as part of a broader bilateral trade deal reached July 30.
Meanwhile, shipments to the European Union surged 32.7 percent on-year to $713 million last month, buoyed by strong demand for eco-friendly vehicles.
Outbound shipments of eco-friendly cars rose 17 percent from a year earlier to 68,000 units. In particular, exports of electric vehicles (EVs), which had been on a steady decline since January 2024, rebounded in June and continued their upward trend in July.
At home, sales of automobiles rose 4.6 percent on-year to 138,503 units in July. Domestic production also rose 8.7 percent to 316,295 units.
Domestic sales of EVs came to 26,000 units in July, jumping 69.5 percent from a year earlier and setting a new monthly record. EVs accounted for 18.5 percent of total monthly auto sales, also marking the highest local market share on record.
