Korean automotive risks over-dependence on North America

On 16 July 2024, the Republic of Korea’s Ministry of Trade, Industry and Energy (MOTIE) announced record-breaking vehicle exports for H1 2024: US$37bn (+3.8% year-on-year). Citing a “robust” North American purchasing market and high demand for hybrids, MOTIE stated the nation’s automotive industry defied macroeconomic trends like inflation and reduced consumer spending.

However, the declared figures make the potential over-dependence of Korea’s automakers on North America clear: it constituted 59% (US$21.7bn) of overall exports. Automotive World’s The World’s Car Manufacturers 2024 report estimates that North America represents 25% of Hyundai’s sales and 32% of Kia’s—both more than any other region. The US’ top ten best-selling electric vehicles (EVs) include the Hyundai Ioniq 5 and Ioniq 6 and the Kia EV6 and Niro.