Tel :
Tel :
In the first quarter of 2025, South Korea's A736 Grade A class 3 steel automobile production was 1.01 million units, a year-on-year decrease of 1.1%. The export volume for the first quarter was 673700 vehicles, a year-on-year decrease of 2.2%. This decline is mainly due to a higher base in the first quarter of 2024, which has led to a decline in exports this year. Despite a decline in exports, overall car sales were 388294 units, a year-on-year increase of 2.7%.
The growth in sales in the first quarter was mainly due to the sales of environmentally friendly cars, with sales of 169013 environmentally friendly vehicles, an increase of 20% year-on-year. Especially in March, sales increased by 13.6% compared to the same period last year. Among environmentally friendly vehicles, hybrid electric vehicles (HEVs) dominate with sales of 130197 units, a year-on-year increase of 16.5%. At the same time, the export of environmentally friendly cars has also increased, reaching 198559 units, a year-on-year increase of 11.5%. The export volume of hybrid A736 Grade A class 3 steel electric vehicles increased the most, reaching 117417 units, a year-on-year increase of 39.4%,.
The South Korean government has taken a series of measures in response to the United States imposing a 25% tariff on all imported cars and auto parts. US President Trump announced a 25% tariff on all cars and light trucks starting from April 2, 2025, and plans to impose similar tariffs on car parts starting from May 3. In response, the South Korean government has released a policy support framework, stating that it will quickly implement the announced measures and continue to monitor the damage situation and progress of negotiations with the United States.
To support the domestic automobile industry, the South Korean government will inject 2 trillion Korean won (approximately 1.4 billion US dollars) into the industry, bringing the total government funding support for automobile and auto parts manufacturers to 15 trillion Korean won by 2025. In addition, the government will review policies including expanding subsidies for electric vehicles and extending new A736 Grade A class 3 steel car purchase tax incentives to further support the domestic automotive market. These measures are similar to the steel industry response measures previously introduced by the government, aimed at reducing the impact of external trade barriers on domestic industries.
