South Korea’s electric vehicle (EV) exports, including hydrogen-powered models, recorded a sharp rebound in June, climbing to $780 million — up 11.2% year-on-year — according to data released by the Ministry of Trade, Industry and Energy (MOTIE). This marks the first growth in EV exports in 16 months and signals a potential turnaround in the country’s eco-friendly automobile sector.
Eco-friendly vehicle exports overall surged 18.6% compared to the same month last year, reaching an all-time monthly high of $2.2 billion for the third consecutive month. The growth was led by the rising demand for EVs and a continued strong performance in the SUV segment.
Total automobile exports also showed signs of recovery, reaching $6.34 billion in June — a 2.3% increase from the previous year — setting a new record for the highest export value ever recorded for the month of June.
Model Performance: SUVs and EVs Dominate
GM Korea’s Trax remained the top-performing export model with 28,797 units, followed by Hyundai’s Kona (21,399 units), Palisade (15,947 units), and Trailblazer (15,747 units), reaffirming the strong global demand for Korean-made SUVs.
Electric vehicle exports also saw a robust increase, with nearly 22,000 units shipped abroad — a 21.4% YoY increase. Leading the charge were Kia’s EV3 (7,903 units) and the Casper EV (3,938 units).
Regional Export Trends: EU Growth Offsets U.S. Decline
Exports to the United States declined by 16% YoY to $2.69 billion. In contrast, shipments to the European Union rose for the third consecutive month. Notably:
- Germany recorded $150 million in auto imports from Korea, up 137.8%.
- The Netherlands imported $90 million worth, a rise of 89.8%.
The ministry attributed this growth to last year’s low base, stronger EV demand in Europe, and KG Mobility’s launch of a European sales subsidiary in Germany in August 2024.
Auto Parts and New Market Expansion
Exports of automobile parts rose 2.5% YoY to reach $1.8 billion. Notable growth was seen in:
- U.S.: $680 million (+6.3%)
- Czech Republic: $70 million (+4.9%)
- Kazakhstan: $40 million (+208%) — driven by rising demand for aftermarket parts.
Domestic Sales and Production
South Korea’s domestic auto sales grew for the fifth straight month, reaching 146,000 units in June — a 5.8% increase YoY. Of these, 117,000 units were domestically manufactured (+6.2%), while imported cars accounted for 29,000 units (+4.0%).
Eco-friendly vehicles made up nearly half (49.8%) of total domestic sales, with EV sales surpassing 20,000 units for the second consecutive month following a recovery in May, the first since March 2024.
Vehicle production remained steady in June at last year’s levels, posting a marginal 0.1% decline. While increased domestic demand helped cushion the impact, the dip in exports (-3.1%) affected overall output.
However, pickup truck production soared to 23,000 units — an 853% YoY increase, driven by new models such as the Hyundai Tasman and KGM’s Musso EV. This led to a 131% increase in local sales and an 850% surge in exports of pickups.
H1 2025 Performance: Exports Down, Domestic Demand Up
In the first half of 2025, Korea’s total vehicle exports dropped by 3.8% YoY to 1.41 million units, mainly due to higher overseas production and a strong base year. Nevertheless, domestic sales rose by 3.5% to 830,000 units, supported by tax incentives and ongoing EV adoption.
Total production for the January–June period stood at 2.11 million units, down 1.6% YoY.
Government Outlook
Looking ahead, MOTIE acknowledged that the second half of 2025 faces risks from potential labor disputes, unresolved wage negotiations, and global trade uncertainties. In response, the government plans to maintain close collaboration with industry stakeholders.
Key policy directions include:
- Expanding into new export markets
- Strengthening competitiveness in future mobility
- Providing tailored support for exporters affected by trade-related challenges
