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by IANS |
Seoul, May 20 (IANS) South Korea's automobile exports declined slightly in April from a year earlier, largely due to a sharp drop in shipments to the United States following Washington's imposition of steep tariffs on foreign-made cars, government data showed on Tuesday.
The value of outbound shipments of automobiles came to US$6.53 billion last month, down 3.8 percent from a year earlier, according to data from the Ministry of Trade, Industry and Energy.
By region, exports to North America tumbled 17.8 percent on-year to $3.36 billion, with shipments to the U.S. plunging 19.6 percent to $2.89 billion, reports Yonhap news agency.
In contrast, exports to the European Union surged 26.7 percent to $953 million, driven by robust sales of Kia Corp.'s EV3 and Hyundai Motor Co.'s Casper Electric.
On the domestic front, car sales increased for the third consecutive month in April, growing 6.7 percent from a year earlier.
The rise was led by strong demand for electric vehicles (EVs) and hybrid models, which saw sales growth of 50.3 percent and 29.9 percent on-year, respectively.
EVs and hybrids accounted for 46 percent of the total 151,000 vehicles sold in the domestic market last month.
The South Korean auto industry is closely monitoring the impact of the 25 percent tariff imposed by the Donald Trump administration, which took effect on April 3.
In response, the government announced plans to inject an additional 2 trillion won ($1.43 billion) in liquidity into the industry, on top of the previously pledged 13 trillion won in policy financing.
Seoul also vowed to consider a range of measures to bolster the domestic automotive sector, including expanded subsidies for EV purchases, extended tax incentives for new vehicle buyers and efforts to diversify export markets.
Meanwhile, South Korea and the U.S. are scheduled to begin working-level consultations later this week to draw up a comprehensive agreement by early July. The talks will cover the new U.S. tariff regime, as well as broader economic and industrial cooperation.
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