The U.S. has long wanted to sell more cars in Asia. Do Asian consumers want them?

Seoul – In the early 2000s, an observer driver may have noticed an unusual landscape on the streets of South Korea: some police cars were Ford Tauruses.

Although the South Korean patrol carts were normally supplied by Hyundai or Kia, the Torus were there as a goodwill gesture from the South Korean government, which bought 100 of them to upset the reality of the automotive trade in 2002, and then sold with 8% of US consumers, but 2.5%. Blocking for boot.

As a result, in 2000, 570,000 South Korean cars were imported by the US, only 2,500 in the other direction.

Thanks to the 2012 Free Trade Agreement, no country has tariff the other cars for nearly ten years. However, unilateral flow has not changed. Last year, South Korea exported 1.5 million cars to the US with a setting of $ 37.4 billion, but the South Koreans bought approximately 47,000 vehicles worth $ 2.1 billion from the USA

The verification of this inequality and similar imbalances with countries such as Japan has been a focus on President Trump’s ongoing trade war.

“Perhaps the worst is the non -financial restrictions brought by South Korea, Japan and many other nations, Tr Trump said in April, explaining 25% of all foreign cars in all foreign cars.

It is not the first president to blame the United States of America for delayed car exports. During the period, Obama has made the abolition of trade barriers such as regulatory barriers to a center of the agenda to increase American exports.

In Asia, however, analysts and consumers tell a different story they have told for years: they do not only enter American cars – and neither the government campaign nor the increasing market access will probably not change it.

Singapore -based consultancy YCP Automotive Specialist Leon Ceng expresses this: “Deeper problem, not documents, not the product is suitable.”

In the USA, cars are larger, more expensive and more polluted in the last few decades – everything to make a difficult sales to Asian consumers.

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At first glance, Vietnam may seem like an Asian market in which American cars should support under the trade regime of Trump.

In accordance with the trade agreement reached by the two countries this month, the Trump administration agreed to reduce the tariff rate against 46% against Vietnam to 20%, and in return, it guaranteed “preferential market access for US goods, including large motor cars”.

“American -made sports vehicles, which are very successful in the United States, will be a great contribution to various product lines in Vietnam, Tr Trump said.

Although the subtle pressure of the agreement has not yet been finalized, the vehicles in this category are expected to be given 0% import tax – a significant decrease in a significant decrease from 70% of their previously encountered.

Last year, more than 340,000 passengers were sold in Vietnam – an increase of 12.6% compared to the previous year – and some of which increased appetite for both larger and foreign cars.

Three Hongguang mini house is the best -selling electric car in China.

(General Motors)

Nevertheless, Cheng doubts that American SUVs will fly from the dealership floors in a country where roads are blocked by motorcycles and that the average monthly income will be around $ 300.

“Vietnam’s automobile market explodes at the headline numbers, but still small per qualifying. [like motorcycles and mopeds]”He said.” In the slice of this small car, shoppers are turning to the narrow city streets, tight parking nests and family budgets: Thai Toyota Fortuners, Korean Hyundai Santa Fes or his hometown Hero Vinfast’s middle -priced house crossover. US name plates are curious. “

And other obstacles, such as a valuable tax (VAT) or a special consumption tax of 50% and 60%, are applied to all larger engines, so the SUVs sent from the USA are a weak sale.

“Explorer or Tahoe, which is roughly 82,000 US dollars on the showroom floor last spring, falls to 60s last spring, Cheng said Cheng. “Cheaper, but still a luxury purchase in Vietnam’s price -sensitive market.”

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Japan, which has a well -developed car culture, has other obstacles.

Despite Trump’s injustice charges, Japan has actually kept tariffs for American cars since 1978, unlike the USA of the United States and now 25%. However, there are several non -tariff trade barriers, such as different home charging standards, which are effectively disadvantageous to American cars, or the necessity of equipping all cars with an automatic emergency braking system.

Experts, deeper problem, more intense urban environments that prefer suitable compact cars Japanese consumer tastes, American car manufacturers are weakly reflected in the more cumbersome product lines, he says.

“Many people say that [American cars] Do not comply with parking lots or ‘difficult to be handled on narrow roads,’ says the automotive research company Jato Dynamics Analyst Felipe Munoz.

In order to save new vehicles, Japanese drivers must confirm that they can access a sufficient parking area from the police. However, with much smaller areas in the USA, approximately 40% of the Japanese automobile market kei The car is a type of miniar specific to the country where the Japanese government also encourages with tax advantages.

This has led foreign cars to form less than 10% of the Japanese automobile market, along with strong brand loyalty for local players, and German producers are taking their share of the lion. According to Japan Automobile Imports Assn, only 0.3% of all automobile sales – or about 16,000 – American brands came.

Ultimately, according to TAKESHİ Miyao, a Tokyo -based automobile analyst, the biggest source of US car manufacturers cannot adapt to local consumers.

Carlos Meinert, Vice President of Korean Sales and Service Department of General Motors Co., presented a GMC Sierra truck in February 2023 during the launch event of GM Korea Co. in Seoul.

(Bloomberg through Getty Images)

For example, European automobile manufacturers, such as Mercedes, have been proactive while making their cars on the right hand driver-Standard-American competitors in Japan do not want to do this historically.

“The infrastructure in Japan cannot be set, Miy Miyao said. “US car manufacturers did not have a car variations in accordance with the Japanese market and did not make much effort for marketing. On the other hand, German car manufacturers worked very hard on the Japanese market. For example, Mercedes-Benz Japan was planning a car to sell in the Japanese market for more than 15 years.”

“Even if all non -tariff obstacles for foreign cars in Japan are removed, US cars are still not popular,” he said.

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Although American cars are less obstacle than Japan, the situation in South Korea is similarly decreasing.

Lee Hang-Koo, researcher of Korean Automotive Technology Institute, said, “There are not many trading barriers to tariff or tariff,” he said. “However, US car manufacturers have never made any efforts to marketing or applying to South Korean consumers. Instead, they continue to shift the crime to unfair trade practices.”

The Free Trade Agreement, signed by former president George W. Bush, which came into force in 2007 after five years, has kept cars without any target for both sides since 2016, and alleviated most of the remaining regulatory barriers such as the re -negotiations of this agreement, security or emission test rules.

Under the last term re -negotiated in Trump’s first period, up to 50,000 American -made vehicles can be imported to South Korea without additional local security tests. These rules have been implemented liberally, despite their criticisms that are confusing to local drivers who are accustomed to amber, and even if they meet local standards for urgent escape systems, they allowed American cars with red braking lamps, even if they meet local standards for emergency escape systems.

However, American automobile manufacturers fought to make the most of this exemption. Korean automobile importers and distributors sold more than 40,000 units in the country last year – approximately 15% of the general foreign automobile market. And even then, more than half of them were Teslas.

Although American business representatives have complained about the wider emission standards of South Korea than in the United States, Lee states that they are not easy to do: Last year, a Constitutional Court’s decision has found that South Korea’s current climatic targets are insufficient, ie emission standards will probably be less wiggling.

“The problem is that, except Tesla, American automobile companies, South Koreans try to sell more electric vehicles when they need to sell gauzlers will not buy,” he said.

For South Korean consumers, the country’s high gas prices are sensitive, the fuel economy is often the biggest agreement – even if they feel positive for American cars.

Hong Seung-Ki, a 38-year-old musician who lives in Seoul, said, “American cars have a unique charm, and there is an open design philosophy and a rich history compared to South Korean cars that make me feel a little bland.”

Hong lasted for years of his favorite weapon Metal Gray Ford Mustang. Now, after a short transition to a Hyundai, a motorcycle is driving.

“If I was just rich, I would buy another American car. Currently, I don’t think I could afford to buy one as a daily driver,” he said. “Compared to domestic cars in a similar price range, it does not have much features and there is a huge cost difference when it comes to general maintenance such as after -sales service.”

As in Japan, American automobile companies – even those with a production base in the country – have strong impressions that the South Korean market came to see as a thinking later.

Although it supports the local market networks from local unions and targeting the local market in a more aggressive way by shifting home production to two South Korean plants, GM Korea exports do more than 90% of Chevy Trax and Trastblazer, which it produces abroad, most of the US consumers.

For many, a signal in which American automobile companies are largely thrown into the towel.

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Nevertheless, there is the disintegration of success stories that can offer clues about the war of the fuel economy with domestic competitors and the prestige market against European markets.

In Japan, Jeep, who was praised to adapt to local features with right driver options and size settings, has been increasing popularity. It is a proof that American designs can still descend with the right niche, despite being built in Vietnam, dominated by the turntable segment.

In South Korea, Ford Taurus achieved a modest success in the early 2000s following the government’s promotion pressure. But Lee would point out the other descriptive imports of that period: the very active odds of Chrysler’s unexpected cult in the country Pt Cruiser.

“It was a strange-looking car with a Roly-Poli exterior, but there was a lot of space and there was nothing in South Korea to compete with him in his segment,” he said. “Somehow, it just worked.”