S. Korea's auto exports surpassed US$ 70 bil. for second straight year in 2024

Korea's automobile industry remained resilient last year driven by its exports of hybrid vehicles.

Our correspondent Moon Hye-ryeon has more.

South Korea's auto exports continued to boom in 2024 due to robust growth in hybrid vehicle exports.

That's according to the latest automotive trends report released by the Ministry of Trade, Industry and Energy on Thursday, which shows that the country's auto exports came to 70-point-8 billion U.S. dollars last year.

This marks the second-highest annual performance following the record of 70-point-9 billion dollars in 2023.

Despite the global stagnation in demand for electric vehicles contributing to the point-one percent decline in total exports, the popularity of hybrid vehicles offset the losses.

Exports of eco-friendly vehicles, which include EVs, hydrogen vehicles, hybrids, and plug-in hybrids, totaled 23-point-2-1 billion dollars – down by around four percent from the previous year.

However, hybrid vehicle exports surged by nearly 46 percent, 11-point-3 billion dollars.

In terms of domestic production, South Korean automakers produced 4-point-1-3 million vehicles in 2024, a 2-point-7 percent decline from the previous year.

The top-produced models were Hyundai Motor's Avante, Chevrolet's Trax, Hyundai Motor's Kona, Kia Motor's Sportage, and GM Korea's Chevrolet Trailblazer.

Approximately 67 percent of domestically produced vehicles were exported.

Domestic sales dropped by 6-point-5 percent year-on-year, reaching 1-point-6-3 million units, as weakened consumer sentiment and declining EV demand took a toll.

However, eco-friendly vehicle sales in the domestic market showed resilience, climbing by more than 18 percent – meaning that four out of every ten new vehicles sold in South Korea last year were eco-friendly.

Among these, hybrid vehicles stood out with a 32 percent surge in sales compared to 2023.

December's automobile export revenue, however, fell more than five percent from the same month in the previous year to six billion dollars.

The Ministry of Trade, Industry, and Energy attributed the decline to factors such as the safety inspections and component factory damages caused by heavy snow in late November, as well as a drop in export prices due to weaker EV demand.

Moon Hye-ryeon, Arirang News.