Cars awaiting export (Image courtesy of Yonhap)
SEOUL, May 20 (Korea Bizwire) — South Korea’s automobile exports to the United States fell sharply in April 2025, as new U.S. tariffs and a temporary slowdown in electric vehicle demand took a toll on the country’s largest export market for cars.
According to data released Tuesday by the Ministry of Trade, Industry and Energy, Korea’s total automobile exports in April stood at $6.53 billion, down 3.8% from a year earlier. The volume of cars exported fell 8.8% year-on-year to 246,924 units.
The steepest decline came from the U.S. market. Exports to the United States in April plunged 19.6% from the previous year to $2.89 billion. Cumulative exports to the U.S. for the January–April period fell 13.6% to $10.66 billion.
The ministry attributed the drop to two key factors: the implementation of a 25% tariff on imported vehicles by the Trump administration beginning April 3, and the ramp-up of Hyundai Motor Group’s new manufacturing facility in Georgia, which reduced reliance on exports.
Hyundai Motor Group Metaplant America (HMGMA) located in Ellabell, Savannah, Georgia, USA. (Image courtesy of Hyundai Motor)
Despite the export slowdown, local sales in the U.S. remained strong. Hyundai’s U.S. affiliate reported a 19% increase in domestic sales in April, buoyed by robust demand for EVs like the Ioniq 5, EV6, and EV9, now being produced at the Georgia plant. Officials also cited stable vehicle pricing and pre-tariff purchase demand as contributing factors to the sales uptick.
Outside the U.S., demand remained resilient. Exports to the European Union jumped 26.7% year-on-year in April to $750 million, while exports to broader Europe rose 11.6% to $450 million. Sales to Asia surged 53.9% to $440 million, and shipments to the Middle East climbed 4.5% to $430 million.
Despite the ongoing EV chasm—a lull in consumer demand amid infrastructure and pricing concerns—exports of eco-friendly vehicles rose 1.4% in April to 73,697 units. Electric vehicle exports fell 12.5% to 21,171 units, but hybrid vehicles helped offset the decline, with exports up 9.5% to 46,627 units.
Domestically, auto sales reached 150,622 units in April, up 6.7% from the previous year. Sales of eco-friendly vehicles surged nearly 35% to 69,731 units, including a 50.3% jump in electric vehicle sales and a 29.9% increase in hybrids.
Meanwhile, domestic auto production declined 2.2% year-on-year to 385,621 units.
The ministry said that despite U.S. trade headwinds, diversified demand from other global markets and growing domestic appetite for eco-friendly vehicles are helping cushion the overall impact on Korea’s auto industry.
Kevin Lee (kevinlee@koreabizwire.com)
