SEOUL, South Korea - South Korea's automobile exports are expected to hit a record high in 2024, buoyed by increasing global demand for eco-friendly vehicles and sport utility vehicles (SUVs). The Korea Automobile and Mobility Association (KAMA) released a report on Sunday forecasting a significant rise in vehicle exports, which are projected to grow by 5.4% year-on-year, reaching a value of US$74.7 billion.
According to Yonhap News Agency, the surge in car exports has been supported by strong sales performances during the first five months of the year, where exports rose 4.7% on-year to $30.8 billion, marking the highest figure for any similar period on record. The total export value is anticipated to reach $98 billion when combined with expected auto component sales globally.
The report highlighted particularly strong demand in the North American market, as well as the rising popularity of South Korean SUVs and hybrid models, which are driving this growth. KAMA chief Kang Nam-hoon emphasized the need for continued efforts to maintain stable labor-management relationships and flexible working systems, along with supportive government policies, to ensure sustained export growth amid global geopolitical challenges.
Despite the robust export outlook, domestic car sales within South Korea are projected to decline by 5.9% to 1.65 million units in 2024 due to weak local demand and a high base effect. The report also noted a slight decrease in domestic car production, expected to dip by 0.1% to 4.24 million units this year.