SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s automobile exports surged by 7.0% compared to the previous year, reaching a total of US$6.24 billion. This figure not only set a new record for July but also surpassed the former July high of US$5.90 billion registered in 2023. The Ministry of Trade, Industry and Resources highlighted increases across exports, domestic sales, and manufacturing output. Vehicle production grew by 11.3%, totaling approximately 352,000 units, while local vehicle sales edged up by 0.5% to 139,000 units.
A significant portion of the export growth was driven by eco-friendly vehicles. Their overseas sales value climbed 25.5% year on year, reaching US$2.59 billion. Exports of electric and hydrogen vehicles rose 31.9% to US$940 million, whereas hybrid vehicle exports increased 22.2%, totaling US$1.65 billion. Conversely, exports of traditional internal combustion engine vehicles declined by 3.1% to US$3.65 billion. Notably, eco-friendly models made up around 41.5% of South Korea’s total automobile export value in July.
North America remained the primary destination for Korean vehicle exports, with shipments climbing 18.0% to US$3.25 billion. Exports to the European Union also grew significantly, up 23.5% to US$880 million. Shipments to the Middle East reached US$430 million, reflecting a 12.7% increase from July 2025, breaking a seven-month streak of year-on-year declines in the region. Conversely, exports to Asia fell by 27.1%, while shipments to Central and South America decreased by 7.4%.
Eco-friendly vehicles bolster export figures
The rise in production during July was partly due to an adjustment in the industry’s summer operating schedule. Major automakers shifted their vacation periods from July last year to August this year, resulting in more working days during the month. As a result, output increased to roughly 352,000 vehicles, with factories operating longer hours than in July 2025. Hyundai Motor was among the key manufacturers involved in discussions regarding the sector’s monthly performance and production conditions.
Domestic market demand remained relatively stable despite a sharp increase in sales of lower-emission vehicles. In July, South Korean consumers purchased approximately 84,000 eco-friendly vehicles, representing a 14.6% rise from the previous year. These models accounted for about 60% of total vehicle sales domestically. Battery electric vehicle sales grew 47.5%, reaching 36,000 units. Overall, domestic auto sales for July totaled 139,000 vehicles, indicating a modest 0.5% increase compared to the same period in 2025.
Demand growth in North America and Europe
The July data revealed a clear divergence: robust demand for eco-friendly vehicles contrasted with a decline in exports of traditional models. Hybrids contributed the most to the eco-friendly export value at US$1.65 billion, while electric and hydrogen vehicles added another US$940 million. Combined, these segments pushed green vehicle exports above US$2.5 billion for the month. Despite this, conventional internal combustion engine vehicle exports remained larger in absolute value at US$3.65 billion, even with a year-on-year decrease.
Overall, South Korea’s auto industry experienced concurrent growth in exports, manufacturing output, and domestic sales in July. The strongest international demand came from North America, with notable double-digit gains also registered in the European Union and the Middle East. The share of eco-friendly vehicles increased in both exports and domestic sales, thanks to higher shipments of hybrids and electric models. Regional variations were evident, with declines in Asia and Central and South America partially offsetting the growth seen elsewhere in the data for July.