Daijiworld Media Network - Seoul

Seoul, Mar 10: South Korea ranked seventh in global automobile production in 2024, dropping one spot from the previous year due to sluggish domestic demand and economic challenges, the Korea Automobile & Mobility Association (KAMA) reported on Monday.

The nation’s car output declined to 4.13 million units from 4.24 million in 2023, as high inflation and interest rates dampened consumer sentiment, leading to lower vehicle sales.

“A combination of weak domestic demand and potential U.S. tariffs on auto exports will likely continue to impact local production,” a KAMA official said, urging the government to offer tax benefits for next-generation vehicle production and facility investments.

China retained the top spot with 31.28 million units, followed by the United States (10.56 million), Japan (8.23 million), and India (6.01 million).

Meanwhile, industry forecasts suggest continued declines in South Korea’s domestic sales and production in 2025, as reduced disposable income and cuts in electric vehicle subsidies weigh on demand.