South Korea’s auto exports to reach record $74.7 billion in 2024: Report

Seoul: South Korea’s car exports are forecast to reach a record high this year, driven by solid demand for eco-friendly models and Sport Utility Vehicles (SUVs), an industry association said on Sunday.

According to the Korea Automobile and Mobility Association (KAMA), the country’s car exports are projected to grow 5.4 per cent on-year to $74.7 billion in 2024, an all-time high.

The amount is expected to come to $98 billion if taken together with expected auto component sales in the global market.

During the first five months of this year, car exports rose 4.7 per cent on-year to $30.8 billion, a record figure for any cited period ever, government data showed, reports Yonhap news agency.

“Car exports are expected to enjoy solid growth in the second half, led by strong demand from the North American market and the rising popularity of domestic makers’ SUVs and hybrid models,” the report read.

KAMA chief Kang Nam-hoon called for efforts to maintain the stable labour-management relationship, the introduction of flexible working systems and policy support to ensure stable shipments amid geopolitical instability to continue the export growth momentum.

However, domestic sales of cars are expected to fall 5.9 per cent on-year to 1.65 million units in 2024 on weak domestic demand and a high base effect.

Domestic production is forecast to inch down 0.1 per cent to 4.24 million this year, according to the report.