March 11, 2025 – According to a report released today by the Korea Automobile Manufacturers Association, domestic car production in South Korea fell by 2.7% to 4.13 million vehicles in 2024, pushing the country down to seventh place in global rankings. The report revealed that South Korea was surpassed by China, the United States, Japan, India, Germany, and Mexico in terms of automobile output last year, with the top four nations accounting for 59.7% of total global production.
Locally, South Korea sold 1.635 million vehicles in 2024, marking a decrease of 6.5% compared to the previous year and representing the lowest figure since 2013. On the export front, however, there was a marginal increase of 0.6% in the number of cars shipped overseas.
The report further highlighted that the South Korean automotive industry is currently facing threats from limited domestic demand and intensifying global competition. Specifically, the expanding global market share of Chinese companies and the potential imposition of tariffs by the US government are among the factors that could contribute to a decline in South Korea’s car exports. Additionally, the sluggish underlying demand for automobiles in the local market is unlikely to significantly boost production, even if there is a recovery in demand this year.
