Used cars are in high demand thanks to tariffs

While automakers are facing great pressure from policy changes in the US, used car exports from South Korea have suddenly skyrocketed, becoming the new "trump card" for the country's auto industry.

From the muddy land that was once a seaside amusement park, tens of thousands of used cars are loaded into containers and shipped to seaports, exported overseas. While South Korean automakers are under heavy pressure from tariffs, with exports to the US down for six consecutive months, used car dealers are largely immune.

"The US is not our main export market, so tariffs do not have a big impact on our business. In fact, the data shows that used car exports are growing strongly, contributing to boosting Korea's export activities," said Kevin Seol, a used car exporter.

Indeed, in August alone, Korea's used car exports reached US$711.5 million, up 35% year-on-year. This strong momentum offset the negative impacts of tariffs, helping the Korean auto industry set a new export record in August.

Mr. Park Young Hwa - Chairman of the Korea Used Car Export Association shared: "This year, we really expect the export volume to exceed 700,000 units. In the first half of the year alone, we expected about 370,000 vehicles, but the actual export reached about 450,000 vehicles, partly due to the strong demand in Syria after the conflict ended."

Experts predict that South Korea's used car exports could hit a record in both volume and value this year, with growing demand from Russia, Central Asian countries and the Middle East.

Mr. Shin Hyun Do - Director of the Korea Used Car Distribution Research Institute commented: "Regarding the US tariff increase, the situation may not be too bad for the used car export market. If the US tariff on new cars increases, car prices tend to increase in the long term. This will lead to an increase in global car prices and used car prices may also increase. In that case, exporters can sell used cars under more favorable conditions than before."

However, this boom is being hampered by poor infrastructure at used car collection points. In the absence of export complexes for used cars, businesses have to rent vacant land to store vehicles awaiting export and set up temporary offices. Some officials have proposed the establishment of a used car export registration system and the development of specialized complexes to promote sustainable development of the industry.

Source: https://vtv.vn/o-to-cu-dat-khach-nho-thue-quan-100251004053243534.htm