In the first quarter of this year, exports of domestically produced automobiles to North America decreased by 9.4% compared to the first quarter of the previous year. Although tariffs on the automobile industry in the United States have not been imposed yet, exports to North America have significantly decreased. The automobile tariffs went into effect on the 3rd of this month.
According to the Ministry of Trade, Industry and Energy on the 15th, the export value of domestically produced automobiles to North America in the first quarter of this year was $9.063 billion, a 9.4% decrease from the first quarter of the previous year ($10.04 billion).
The export value to North America (compared to the same month last year) decreased by 28.7% in January due to fewer working days, but increased by 14.8% in February, only to see a reversal with an 8.4% decrease in March.
The first quarter is a period when tariffs imposed by the United States on automobiles were not yet in effect. The automobile industry is concerned that the decrease in exports to the U.S. may become larger starting this month, when the industry tariffs are imposed.
According to the Ministry of Trade, Industry and Energy, both automobiles and automotive parts experienced poor export performance in the first quarter. The export value of domestically produced automobiles in the first quarter was $17.3202 billion, a 1.3% decrease compared to the first quarter of the previous year. The export value of automotive parts was $5.269 billion, down 8.6% from the first quarter of the previous year.
Looking at export values by region, exports decreased compared to the same period last year not only in North America (-9.4%) but also in Central and South America (-9.3%), Oceania (-12.9%), and Africa (-0.2%).
However, export values to Asia increased by 37% compared to the same period last year, and exports to the Middle East rose by 22.7% compared to the first quarter of the previous year. Other Europe (3.9%) and the European Union (3.8%) also showed an upward trend.
The ministry noted that the reason for the decrease in exports in the first quarter was due to last year’s first quarter export performance achieving an all-time high, which created a base effect, and because the number of working days was three days fewer than in the first quarter of the previous year.
The ministry plans to rapidly implement the 'Emergency Response Measures to Strengthen the Automotive Ecosystem' announced on the 9th and to respond flexibly while continuously monitoring the damage situation and the progress of negotiations with the U.S.