Illustration: Chen Xia/GT

In the face of the US tariffs on auto imports, the latest sales results from South Korean automakers have drawn significant attention, shedding light on the remarkable resilience of the Asian vehicle industrial chain.

The total global sales of South Korea's five major automakers increased 0.3 percent year-on-year in May, reaching 689,311 units, the second consecutive month of growth, the Yonhap News Agency reported on Monday.

The domestic sales of the five automakers in May decreased by 2.9 percent to 113,261 units, while overseas sales increased by 0.9 percent to 576,050 units. That means overseas sales have become the linchpin supporting the growth of South Korea's automotive sector.

What makes this achievement particularly remarkable is the challenging backdrop against which it was accomplished. The US imposed a 25-percent tariff on auto imports, effective as of April 2. 

Given that the US market accounts for 49 percent of South Korea's total auto exports, there were widespread concerns that South Korean auto sales would be severely hit, possibly even experiencing a sharp decline. However, the data after the tariff implementation showed that South Korean auto sales demonstrated unexpected stability, a strong testament to the industry's resilience. 

At the core of South Korea's automotive industry lies its deep integration with the Asian automotive supply chain. Renowned globally for its high level of completeness and integration, this supply chain coordinates efficient component sourcing, precision vehicle manufacturing, and cutting-edge technological research and development (R&D). 

By deeply embedding themselves in this regional network, South Korean automakers have established close industrial collaboration with neighboring countries and regions, creating a crucial buffer against external risks.

For instance, in 2022, Hyundai Motor Group launched a new auto plant in Indonesia. In 2024, Hyundai and LG Energy Solution launched Indonesia's first battery cell production plant for electric vehicles, according to Reuters.

The collaboration between South Korean automakers and their Chinese counterparts is particularly notable, characterized by a complex new dynamic of competition and cooperation. On the one hand, South Korean car brands face increasingly fierce competition from Chinese automakers both at home and abroad. On the other hand, a portion of the overseas sales of by South Korean automakers is supported by their Chinese factories. For instance, Hyundai's factory in Yantai in East China's Shandong Province and Kia's base in Yancheng, East China's Jiangsu Province, are all important pillars of the brands' global layouts.

During the process, South Korean automakers leveraged China's manufacturing scale, cost efficiencies, and increasingly sophisticated R&D capabilities to optimize global competitiveness, while Chinese suppliers and partners gained experience and expanded into the international market through cooperation.

Moreover, external pressure, rather than fracturing this bond, is accelerating collaboration. In April, KG Mobility signed an agreement with Chinese automaker Chery for joint development of sport utility vehicles.

This collaboration not only addresses the shared needs of both parties in technology R&D and market expansion, but also underscores the interdependence and mutual growth relationship among companies within the Asian auto industrial chain.

In the face of escalating US tariff pressures and intensifying global auto market competition, Asian automakers are looking to the broader international market for new growth opportunities. In this context, the practical need for and strategic value of cooperation among regional players have actually expanded rather than diminished.