Seoul— South Korea’s automobile exports dropped by more than 4 percent in May compared to a year earlier, as shipments to the United States plunged following steep import tariffs imposed by Washington, according to government data released Tuesday.
Figures from the Ministry of Trade, Industry and Energy show that outbound shipments of vehicles totaled $6.2 billion last month, down 4.4 percent year-over-year. Although this marks the second-highest export value for any May on record, it also represents the second straight month of decline, Yonhap news agency reported.
By volume, auto exports fell 3.1 percent to 247,577 units. However, exports of eco-friendly vehicles rose 10.2 percent to a monthly record of 75,000 units, fueled by strong global demand for hybrid models.
The ministry cited two primary reasons for the overall downturn: a high base effect from record-breaking exports a year ago and the impact of 25 percent tariffs on imported cars and auto parts imposed by the U.S. administration under President Donald Trump.
Exports to the United States fell sharply, down 27.1 percent year-on-year to $2.5 billion in May. Total shipments to North America declined 22.3 percent to $3.08 billion. Exports to the Middle East also dipped 7.2 percent to $391 million.
In contrast, shipments to other regions surged. Exports to the European Union climbed 28.9 percent to $837 million, while exports to Asia jumped 45.1 percent to $683 million.
Domestically, automobile sales in May edged up 0.4 percent year-over-year to 142,000 units. However, domestic production declined 3.7 percent to 359,000 units.
In a milestone for the local auto market, monthly sales of eco-friendly vehicles surpassed those of internal combustion engine models for the first time. Over 73,000 eco-friendly units were sold in South Korea in May, up 39 percent from a year earlier, the ministry said. (Source: IANS)
