SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s automotive exports increased by 7.0% compared to the same month last year, reaching a total of US$6.24 billion. This figure sets a new record for July, surpassing the previous high of US$5.90 billion registered in 2023. According to the Ministry of Trade, Industry and Resources, exports in July 2025 totaled US$5.83 billion. Meanwhile, domestic vehicle sales saw a modest rise of 0.5%, amounting to 139,000 units. Vehicle production also grew significantly, up 11.3% to 352,000 units.
Eco-friendly vehicles were the main driver behind South Korea’s export growth during the month. Their export value increased by 25.5% year-on-year to US$2.59 billion. Exports of electric and hydrogen vehicles increased by 31.9%, reaching US$940 million. Hybrid vehicle exports also climbed 22.2%, totaling US$1.65 billion. On the other hand, exports of internal combustion engine vehicles declined 3.1% to US$3.65 billion. Notably, eco-friendly models made up approximately 41.5% of the country’s total automobile export value in July.
North America continued to be the leading regional destination, with exports rising 18.0% to US$3.25 billion. Shipments to the European Union increased by 23.5%, reaching US$880 million. Exports to the Middle East grew 12.7%, totaling US$430 million—this marked their first year-on-year rise in eight months. Meanwhile, exports to Asia fell by 27.1%, and shipments to Central and South America decreased by 7.4%. The data highlights the strongest growth in North America, the European Union, and the Middle East.
Eco-friendly vehicle exports drive July’s record growth
The Ministry attributed the export increase in July to more days of operation and sustained global demand for eco-friendly vehicles and SUVs. Automakers adjusted their summer holiday schedules from July in 2025 to August in 2026, resulting in more working days during July. This shift also boosted production, which rose 11.3% year-on-year to 352,000 vehicles. In June, production reached 394,000 units, up 11.6% from the previous year.
South Korea’s home market showed a smaller growth rate compared to exports and production. Domestic vehicle sales rose by 0.5%, totaling 139,000 units. Eco-friendly vehicles made up about 60% of these sales, accounting for 84,000 units. Electric vehicle sales surged 47.5%, reaching 36,000 units. As a result, eco-friendly models represented roughly three out of every five vehicles sold domestically in July. Overall, domestic sales remained close to the same level as in July 2025.
North American and European markets show strong growth
The positive auto export results contributed to a broader uptick in South Korea’s overall exports during July. Total goods exports reached US$98.89 billion, marking the second-highest monthly value on record and increasing 62.8% from the previous year. Automobiles accounted for US$6.24 billion of that total. Semiconductor exports totaled US$41.01 billion, while ship exports amounted to US$3.29 billion. Nineteen out of the 20 main export categories experienced year-on-year growth in July, including automobiles.
These figures emerged as government and industry representatives convened on Aug. 13 to review conditions across the auto sector. Hyundai Motor, GM Korea, KG Mobility and Renault Korea attended alongside industry and research groups. The discussions covered July auto industry trends, the shift toward future vehicles, and collaboration with parts suppliers. The July data showed simultaneous increases in automobile exports, domestic vehicle sales, and production, with eco-friendly models playing a significant role in both export value and domestic demand.