SEOUL, March 10 (AJP) - South Korea’s auto industry slipped to seventh place in global vehicle production last year, as sluggish domestic demand outweighed modest gains in exports, according to a report released Monday by the Korea Automobile & Mobility Industry Association (KAMA).
The country produced 4.13 million vehicles in 2024, marking a 2.7 percent decline from the previous year. Domestic sales fell to their lowest level since 2013, dropping 6.5 percent year-on-year to 1.635 million units. While exports edged up 0.6 percent, they were not enough to offset weakening local demand.
China, the United States, Japan, India, Germany, and Mexico all outpaced South Korea in auto production.
China remained the world’s leading automobile manufacturer for the 16th consecutive year, producing 31.28 million vehicles — an increase of 3.7 percent — buoyed by government policies aimed at stimulating domestic consumption and promoting exports.
Overall, global automobile production declined by 0.5 percent in 2024 to 93.95 million units, marking the first downturn since the pandemic-related slump of 2020, when output dropped by 15.4 percent.
The global decline was driven in large part by Japan, where production fell 8.5 percent due to quality certification issues at Toyota, Honda, and other manufacturers.
The KAMA report warned that South Korea’s automotive sector faces mounting challenges, including a limited domestic market and intensifying global competition. The association pointed to U.S. tariff policies as a key factor pushing Korean automakers to increase overseas production and investment.
reporter
Candice Kim
candicekim1121@ajupress.com
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