The automotive and mobility components industry (HS 8708, 8703, etc.) is facing combined pressures from the restructuring of the global supply chain and strengthening carbon regulations in 2025-2026.
In particular, the introduction of the US Inflation Reduction Act (IRA) and the EU's CBAM ( Comprehensive Carbon-Based Mobility Agreement ) will require a recalibration of FTA strategies centered on eco-friendly and electric vehicle components
. Exports of internal combustion engine components are expected to slow after 2026, accelerating the structural shift toward batteries, power electronics, and hydrogen mobility components .
Risk factors | 2025-2026 Outlook | Influence (1~5) | Implications |
|---|---|---|---|
| IRA Detailed Guidelines | Strengthening the proportion of North American assembly and parts | 5 | The need for direct investment in North American factories and the cumulative use of FTAs. |
| EU CBAM | Direct target for steel and aluminum parts | 4 | Obtaining material LCA and supply chain carbon data is essential. |
| Korea-EUFTA Origin Management | Weak management capabilities of small and medium-sized partner companies | 3 | RVC Compliance Guide Needed |
| Geopolitical risks | Logistics uncertainty in Europe and the Middle East | 3 | The need to establish a multi-regional procurement network |
| Exchange rates and raw material prices | Stabilizing trend | 2 | Long-term foreign exchange hedging and futures contracts in parallel |
While FTA utilization rates are generally high, at approximately 91% for finished vehicles and 83% for parts, the complexity of country of origin determination (based on PSR and RVC) and the multi-layered supply chain structure
continue to impose a significant burden on small and medium-sized parts companies. The IRA and North American production requirements necessitate a dual strategy
of "FTA application + localization."
division | FTA application rate (%) | Major challenges | Response points |
|---|---|---|---|
| Completed vehicle (8703) | 91 | RVC Determination/Local Procurement Ratio | Expansion of North American and EU assembly bases |
| Core Components (8708) | 83 | Multinational parts origin management | Utilization of the autonomous issuance system |
| Electric vehicle parts (8507·8544) | 87 | Proof of origin for batteries and modules | Parallel implementation of IRA and Korea-US FTA |
| 2nd and 3rd tier vendors | 69 | Lack of documentation and management capabilities | Establishment of a joint association system |
While most finished vehicles and parts are duty-free thanks to the FTA, subsidies, environmental regulations, and procurement systems have emerged as new non-tariff barriers.
The US continues to impose IRAs, the EU continues to impose CBAMs, and China continues to pressure domestic demand protection and domestic production.
market | MFN(%) | FTA application (%) | difference | Major non-tariff barriers | note |
|---|---|---|---|---|---|
| USA | 2.5~5 | 0 | -2.5~-5 | IRA, Funding Regulations, and Grant Conditions | Local production in North America is essential |
| EU | 3~10 | 0 | -3~-10 | CBAM·REACH·Ecodesign | Strengthening material and carbon management |
| china | 15~25 | 5~8 | -10~-17 | Certification and localization regulations | Price competition and domestic demand protection in parallel |
| Vietnam and Thailand | 10~30 | 0 | -10~-30 | Technology, quality standards, and quarantine | There is great potential for RCEP utilization. |
The automotive parts industry, with its high carbon-intensive materials like steel, aluminum, and plastics, is
directly subject to the EU CBAM (2026). Pressure to implement LCA, RE100, and carbon certification systems
is expected to increase from 2025 .
policy | Main contents | Implementation period | Influence (1~5) | Response strategy |
|---|---|---|---|---|
| EU CBAM | Direct taxation of steel, aluminum, etc. | 2026 | 5 | Establishing LCA for each product and process |
| RE100 | OEM-led complete vehicle | Always | 4 | Power procurement and supply chain linkage |
| ISO14067 | Carbon Footprint Certification | 2025 | 3 | Joint consulting is needed for small and medium-sized partner companies. |
| ESG disclosure | OEM/parts linkage | 2025~2027 | 4 | ESG data standardization |
North America (IRA response) : Local assembly of battlefield components, motors, and battery modules and utilization of accumulated FTAs.
EU (Carbon/CBAM Response) : Securing an R&D hub focused on lightweight components and recycled materials.
ASEAN (cost competitiveness) : Utilizing RCEP and establishing local assembly lines
Korea (Global Hub) : Maintaining a technology hub focused on RE100 manufacturing and AI quality control.
The AutoLoop analysis, which integrates recent news sentiment (α), global sentiment (β), and sector sentiment (λ), suggests a gradual
three-month recovery for the automotive and mobility parts industry . North American exports are expected to increase after the details of the IRA application are finalized, while the EU may face a temporary burden due to the costs of responding to the CBAM.
variable | Δ(%) | analysis |
|---|---|---|
| ΔExport_now | +2.4 | Demand recovery in North America and the EU, centered on electric vehicle components |
| ΔImport_now | +1.8 | Expanding imports of batteries and electrical components |
| ΔPrice_now | +0.3 | Rising unit prices for high-end components and lightweight materials |
| ΔSignal_now | +0.028 | Maintaining positive signals (IRA·CBAM expectations) |
| ΔFTAEffect | +0.33 | Tariff + Subsidy Eligibility Effect |
| Forecast_3M | +0.51 (bullish forecast) | A gradual recovery is expected within three months. |
field | Suggestion | Executor | Expected effect |
|---|---|---|---|
| Ensuring FTA-IRA Consistency | North American cumulative requirements specified | Ministry of Trade, Industry and Energy and Korea Customs Service | Ensuring procurement eligibility |
| Support for small and medium-sized enterprises | Expanding country of origin determination and LCA consulting services | Ministry of Trade, Industry and Energy·KOTRA | Strengthening partner response capabilities |
| CBAM response | Expanding Carbon Data Platform and RE100 Certification | Ministry of Environment/Local Government | CBAM cost reduction |
| digital trade | Including automotive software and IP FTA | Trade Negotiation Headquarters | Activation of data trading |
| Supply Chain Finance | ESG+FTA Certification-Based Trade Finance | Korea Finance Corporation | Improve cash flow |
The FTA effect has evolved beyond 'tariff reduction' to the level of influencing IRA, CBAM, and ESG response capabilities.
Forecast_3M: +0.51 — A moderate recovery is expected, and a dual response from North America and the EU is essential.
Future strategic directions:
① Localization in North America + cumulative utilization
② Establishment of carbon data in preparation for EU CBAM
③ Establishment of an integrated support system for FTAs and LCAs for small and medium-sized enterprises
④ Expansion of FTA provisions in response to mobility electrification and hydrogenation.
