Thanks to robust European demand that helped offset decreased exports to the US, which are impacted by high import duties, South Korea’s EV car exports saw a big comeback last month, breaking a 16-month run of decline. According to Korea’s Ministry of Trade, Industry and Energy, on Thursday, the country’s EV exports totalled $6.34 billion in June, up 2.3% from the same month last year. This figure shows the highest volume of Korea’s automobile exports in June.
Regarding regional performance, exports to the EU jumped by 32.6%, reaching $760 million in the same period, while shipments to non-EU Europe and Asia likewise experienced remarkable growth of 52.3% to $600 million and 35.8% to $5.23 billion, respectively.
Strong sales of Korean cars in Asia and Europe virtually offset a 16.0% decrease in EV exports to the United States, which fell to $2.69 billion after a 25% tax on imported vehicles was enacted under the Trump administration in April (source: The Korea Economic Daily). According to the trade ministry report, increased demand for Korean electric vehicles in EU countries, as well as for used cars in non-EU areas and Asia, mostly fueled the strong sales of Korean cars in markets outside the US.
This marks the first rise in South Korean EV exports since January 2024. The automotive sector inside the European Union has been more and more oriented toward electric vehicles as the EU tightens its rules on car emissions this year.
Since their debut late last year in the area, Hyundai Motor Co.’s compact, all-electric SUV, the Hyundai Casper Electric, and Kia Corp.’s EV3 have become rather well-liked (aiming to challenge Tesla Model 3 all-electric). Korean electric vehicles have also benefited from the EU’s imposition of a maximum 35.3% tax on EV exports from China, a response to what is seen as unjust government subsidies.
