Seoul, April 15 South Korea's car exports inched up from a year earlier in March, driven by rising demand from Asian nations while shipments to the United States dropped sharply ahead of the start of US tariffs on auto imports, data showed on Tuesday.
The value of outbound shipments of automobiles came to US$6.24 billion last month, up 1.2 percent from a year earlier, according to data from the Ministry of Trade, Industry and Energy, reports Yonhap news agency.
It marked the second consecutive month of increase and the second-highest export value ever for any March, it added. In terms of volume, however, exports fell 2.4 percent on-year to 240,874 vehicles.
The export value of eco-friendly cars declined 3.1 percent on-year to $2.02 billion in March. In terms of volume, however, sales advanced 5.8 percent to 68,760 units.
Of the total, 41,969 were hybrid models, and 20,757 units were electric vehicles (EVs), the data showed.
Exports to the European Union decreased 3 percent to $780 million.
But exports to Asian countries surged 61.8 percent to $660 million, and those to the Middle East rose 21.2 percent to $490 million, the data showed.
At home, sales of automobiles rose 2.4 percent on-year to 149,512 units in March, while domestic production climbed 1.5 percent to 370,836 units.
During the first quarter of this year, the value of car exports went down 1.3 percent and sales volume lost 2.2 percent from a year earlier.
"The decline was attributed to a reduced number of working days this year and a high base effect, as exports in the first quarter of 2024 had reached an all-time high," the ministry said in a release.
South Korea's auto industry is bracing for the potential impact of the Donald Trump administration's 25 percent tariff on imported cars, which took effect on April 3.
"The government will swiftly implement support measures for the auto industry and respond flexibly while closely monitoring the situation in the industry and the progress of tariff negotiations with the U.S.," the ministry said.
In response to the U.S. tariff scheme, the government announced plans to inject 2 trillion won ($1.35 billion) in additional liquidity into the industry on top of the previously planned 13 trillion won in policy financing.
It also pledged to consider measures to boost the domestic automotive market, such as expanding subsidies for EVs and extending tax breaks on new vehicle purchases, while working to diversify export destinations.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor