SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s automobile exports surged by 7.0% compared to the same month last year, reaching a total of US$6.24 billion. This figure marks the highest ever for July, surpassing the previous record of US$5.90 billion set in 2023. The Ministry of Trade, Industry and Resources highlighted increases across exports, production, and domestic sales. Vehicle manufacturing rose 11.3% to approximately 352,000 units, while domestic sales edged up 0.5% to 139,000 vehicles.
The growth in exports was largely driven by eco-friendly vehicles. Their international sales value climbed 25.5% year on year to US$2.59 billion. Exports of electric and hydrogen vehicles grew 31.9% to US$940 million, and hybrid vehicle exports increased 22.2% to US$1.65 billion. In contrast, exports of traditional internal combustion engine vehicles fell 3.1% to US$3.65 billion. Eco-friendly models made up about 41.5% of South Korea’s total automobile export value in July.
North America continued to be the primary destination for Korean exports, with shipments rising 18.0% to US$3.25 billion. Exports to the European Union also increased by 23.5%, reaching US$880 million. Shipments to the Middle East reached US$430 million, marking a 12.7% increase from July 2025. This uptick ended seven months of consecutive declines in the region’s exports. Conversely, exports to Asia decreased by 27.1%, and shipments to Central and South America declined by 7.4%.
Eco-friendly vehicles bolster export figures
The rise in vehicle production during July also reflects a shift in the industry’s summer operation schedule. Major automakers moved their vacation periods from July last year to August this year, resulting in more working days within the month. As a result, production increased to about 352,000 vehicles, with factories operating longer than in July 2025. Hyundai Motor was among the key manufacturers participating in industry discussions about the sector’s monthly performance and manufacturing conditions.
Despite this increase in factory output, domestic demand remained relatively stable even as sales of lower-emission vehicles saw a significant rise. South Korean consumers purchased around 84,000 eco-friendly vehicles in July, up 14.6% from the previous year. These models accounted for roughly 60% of all vehicles sold domestically. Battery electric vehicle sales grew 47.5% to 36,000 units. Overall, domestic auto sales reached 139,000 vehicles, representing a modest 0.5% increase compared to the same month in 2025.
North American and European markets show robust growth
The July data clearly indicates a divergence between the strong demand for eco-friendly vehicles and the weaker performance of conventional models. Hybrids contributed the most to green vehicle exports, with a value of US$1.65 billion. Electric and hydrogen-powered models added another US$940 million. Collectively, these categories pushed green vehicle exports above US$2.5 billion for the month. Meanwhile, traditional vehicle exports remained higher in absolute terms at US$3.65 billion, despite experiencing a year-on-year decline.
Overall, South Korea’s auto sector experienced simultaneous expansion in exports, manufacturing, and local sales during July. The strongest overseas demand came from North America, while the European Union and Middle East also saw double-digit growth. Eco-friendly vehicles increased their share of both exports and domestic sales, driven by higher shipments of hybrids and electric models. The data further revealed regional variations, with declines in Asia and Central and South America partially offsetting gains elsewhere.