South Korea reports record vehicle exports in 2025

Group 1: Export Performance - The value of vehicles exported from South Korea increased by 2% to US$72.0 billion in 2025, up from US$70.8 billion in 2024, driven by strong overseas demand for hybrid vehicles [1] - Exports of eco-friendly vehicles, including hybrid and electric vehicles, rose by 11% to US$25.8 billion, with hybrid vehicle shipments increasing by 30% to US$14.8 billion [2] - Exports of used cars surged by 75% to a record high of US$8.9 billion, reflecting the improved reputation of South Korean vehicles in overseas markets and favorable exchange rates [2] Group 2: Production and Market Trends - New vehicle exports fell by 1.7% to 2.7 million units, accounting for 67% of vehicle production in the country, while domestic vehicle production decreased by 0.6% to 4.1 million units [3] - The GM Trax was the highest-volume model with an output of 308,000 units, followed by the Hyundai Kona with 270,000 units and other models [3] Group 3: Industry Challenges and Future Outlook - The Ministry of Trade, Industry and Energy noted that US tariff measures posed challenges for the automobile industry in 2025, but uncertainty was eased through policy measures aimed at strengthening competitiveness in eco-friendly vehicles [4] - In 2026, the automobile industry is expected to face challenges such as increased localization of production overseas and intensifying competition, with a projected 6% decline in light vehicle production to 3.809 million units [4]