South Korea’s Automobile Exports in 2025

South Korea’s CBU vehicle exports in 2025 fell 1.7% year-on-year (down 47,000 units) to 2.74 million units, maintaining a high level of over 2.7 million units. While South Korean passenger vehicles were duty-free under the US-Korea FTA, the US implemented new passenger vehicle tariffs in April 2025. This sparked concerns that exports to the US would drop significantly due to reduced price competitiveness. However, exports to North America, including the US, decreased only slightly by 2.2% year-on-year (down 37,000 units) to 1.65 million units. This resilience is attributed to Hyundai and Kia increasing exports of HEVs, which are highly popular in the US. Total eco-friendly vehicle exports rose 19.0% year-on-year (up 139,000 units) to 874,000 units. Within this category, HEV exports surged 30.1% year-on-year (up 130,000 units) to 562,000 units.