The latest data released by the Ministry of Industry and Commerce on March 19 revealed the challenges facing the countrys automotive export industry. According to the report, South Koreas automotive exports reached $51,6 billion in February this year, down from the same rate by 7.8%, showing a declining trend for three consecutive months, reaching a 13-month low since January 2023 ($49,8 billion).

Detailed analysis showed that South Korea’s car exports fell by 11% compared to 19,8653 million units. On the geographical distribution, despite a slight 1% increase in exports to the North American region, exports to other major markets showed a declining trend, with exports to the EU dropped by 23.1%, Asia dropped by 0.9%, the Middle East dropped by 30%, and Oceania dropped by 8.2%.

It is noteworthy that,New Energy VehiclesExport performance was poor.In February, South Koreas new energy vehicle exports amounted to just $17.1 billion, down 15.3 percent, reaching a 15-month low since November 2022, reflecting instability in the global new energy vehicle market and changes in consumer demand.

Analysts point out that the main reasons for the decline in South Korean car exports include the decline in sales of new energy vehicles, as well as the market stagnation during the long Spring Festival holiday in China.In addition, the overall weakness of the global car market and the uncertainty of international trade have also had a negative impact on South Korean car exports.

South Korean automakers are facing pressures from multiple aspects, including rising production costs, global supply chain tensions and increasing international competition.In this context, the South Korean automobile industry is seeking to adapt to change, accelerate technological innovation, increase capacity efficiency, and explore new market opportunities.

The Ministry of Industry and Commerce said it will continue to monitor international market dynamics and support the continued development of the South Korean automotive industry, especially in the new energy vehicle sector. In order to address current challenges and seize future opportunities, the South Korean government and automotive companies are working closer together to develop more flexible and innovative export strategies.