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Tel : 0086-0371-86172891
According to data released by the South Korean A517 Grade H steel Ministry of Industry, Trade and Resources on March 18, 2025, South Korea's automobile production in February 2025 increased by 17.1% year-on-year, reaching 351983 vehicles, reversing the decline of 18.9% in January 2025. This growth provides support for steel demand.
The automobile production in February 2025 reached its highest level since February 2014, setting a record of 361000 vehicles, thanks to the growth in sales and exports.
Specifically, in February 2025, domestic automobile sales reached 132855 units, a year-on-year increase of 14.8%; The export volume was 232978 vehicles, an increase of 17.3%. This growth is mainly driven by government policies, especially the 30% reduction in individual consumption tax for passenger cars and the stimulation of electric vehicle (EV) subsidies. Starting from January 3, 2025, South Korea will lower its consumption tax from 5% to 3.5%. In addition, starting from January 15, 2025, first-time car buyers aged 19 to 34 can receive an additional subsidy of up to 20% on top of the existing subsidy when purchasing an electric vehicle, applicable to all electric vehicles with a value not exceeding 53 million Korean won.
These measures have effectively promoted a significant increase in electric vehicle sales, with electric vehicle sales reaching 14265 units in February 2025, nearly four times the 3583 units in February 2024. With the increase in sales of electric vehicles, the overall sales of clean energy vehicles increased by 50.2% year-on-year in February 2025, reaching 60351 units.
In the sales of clean energy vehicles, hybrid electric vehicles (HEVs) accounted for the largest proportion, reaching 73.9%, or 44615 units, a year-on-year increase of 50.2%.
The South Korean A517 Grade H steel government expects that clean energy vehicles will continue to maintain good market performance in 2025. To further promote the development of this field, the South Korean government has planned to invest at least 21 trillion Korean won by 2025 to promote the growth of the domestic clean energy vehicle and battery industries.
However, the South Korean government has also stated that uncertainty in the global market remains a risk factor, especially with the recent decision by the United States to impose a 25% tariff on all steel and aluminum imports (which will take effect from March 12, 2025). The South Korean government is closely monitoring this issue and has stated that relevant response measures will be formulated by the end of March 2025.
According to data from the US Department of Commerce, South Korea A517 Grade H steel exported 2.55 million tons of steel to the US in 2024, a year-on-year increase of 6.5%, making it the fourth largest steel supplier to the US.
