South Korea’s 2024 auto exports 20240.6% year-on-year growth, Yonhap news agency reported Wednesday, but domestic sales fell 6.5 per cent year-on-year to 1.635 m, the lowest since 2013. As a result, the country’s total 2024 output fell 2.7 per cent year on year to 4.13 M units, dropping one place from 2023 to seventh in the global ranking. South Korea was followed by China, the United States, Japan, India, Germany and Mexico.
The reduction of Korean automobile production is affected by many factors. South Korea’s auto industry is under threat as domestic demand slumps and global competition intensifies, Knenews.com reported. Even if demand recovers this year, the effect on production will not be significant because of reduced underlying demand in the home market, the report said. The report predicts that China’s car industry will gain further influence in global markets this year and that South Korean car exports will fall as a result of proposed US tariffs.
South Korea’s SBS television said further contraction in auto production could have a negative impact on upstream and downstream industries such as parts. South Korea’s industry-wide production index fell by the most since February 2020 as auto production slowed, the joongang Ilbo said. South Korea’s“Seoul News” said the production reduction is not limited to the car industry, machinery and equipment, and other areas of manufacturing have declined, as the pillar of the South Korean economy is in trouble manufacturing. South Korea’s manufacturing purchasing managers’ Index (PMI) fell to 49.9 in February, falling into contraction territory, Yonhap news agency reported Wednesday, citing data from financial analyst S & P Global. The Federation of Korean Industries said recently that the country’s manufacturing sector was facing an“Unprecedented crisis”.