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Korea drops a rank to 7th in domestic vehicle production in 2024

Published: 10 Mar. 2025, 17:37 Updated: 10 Mar. 2025, 17:38

Vehicles wait to be exported at the port of Hyundai Motor in Ulsan on Feb. 11. [YONHAP]

Korea ranked seventh in the world in terms of domestic vehicle output last year, an industry association said Monday, down one notch from a year earlier due to a drop in output amid an economic slowdown.

The country's domestic car production fell to 4.13 million units in 2024 from 4.24 million a year ago as local consumption slowed, according to a report released by the Korea Automobile & Mobility Association (KAMA).

High inflation and high interest rates weighed on consumer sentiment in 2024, driving down vehicle sales in the domestic market, the KAMA report said.

"A combination of sluggish domestic demand and possible U.S. tariffs on vehicle shipments to the United States will likely continue to weigh on local production," a KAMA spokesperson said by phone.

He called on the government to provide carmakers with more tax benefits for local production of next-generation vehicles and facility investments to minimize the impact of declining production on related industries.

China, the United States, Japan and India were the top four car manufacturing countries last year, with 31.28 million units, 10.56 million, 8.23 million and 6.01 million, respectively, the report said.

The world's overall vehicle production fell 0.5 percent to 93.95 million units last year, marking the first on-year decline since 2020, when the corresponding figure plunged 15.4 percent due to the Covid-19 pandemic.

Yonhap