SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s automobile exports experienced a 7.0% year-on-year increase, totaling US$6.24 billion. This figure set a new record for exports in the month of July, surpassing the previous high of US$5.90 billion established in 2023, according to the Ministry of Trade, Industry and Resources. For comparison, exports in July 2025 amounted to US$5.83 billion. Domestic vehicle sales also saw a modest rise of 0.5%, reaching 139,000 units, while production increased significantly by 11.3% to 352,000 vehicles.
The export growth was primarily driven by eco-friendly vehicles, which contributed the most to the month’s gains. Their export value grew by 25.5% from the previous year to US$2.59 billion. Exports of electric and hydrogen vehicles increased by 31.9%, reaching US$940 million. Hybrid vehicle exports also advanced by 22.2%, totaling US$1.65 billion. Conversely, exports of internal combustion engine vehicles declined 3.1% to US$3.65 billion. Eco-friendly models made up approximately 41.5% of South Korea’s total vehicle exports in July.
North America remained the leading regional destination, with exports rising by 18.0% to US$3.25 billion. The European Union saw an increase of 23.5%, amounting to US$880 million. Exports to the Middle East also grew by 12.7%, reaching US$430 million, marking their first year-on-year increase in eight months. Meanwhile, shipments to Asia fell by 27.1%, and those to Central and South America decreased by 7.4%. The data highlights North America, the EU, and the Middle East as regions with the strongest growth in July.
Eco-friendly Vehicles Drive July Export Expansion
The Ministry attributed the export increase in July to an increased number of operational days and sustained overseas demand for eco-friendly vehicles and SUVs. A shift in summer vacation schedules from July 2025 to August 2026 by major automakers led to more working days within the month. Production also rose following this calendar change, with an 11.3% year-on-year increase to 352,000 vehicles. In June, production reached 394,000 units, reflecting an 11.6% rise from the previous year.
Compared to exports and production, South Korea’s domestic auto market experienced a smaller growth. Vehicle sales increased by 0.5% from July 2025, totaling 139,000 units. Of these, eco-friendly vehicles accounted for 84,000 units, roughly 60% of the market. Electric vehicle sales saw a significant jump of 47.5%, reaching 36,000 units. As a result, eco-friendly models made up about three of every five vehicles sold domestically in July. Overall, total domestic vehicle sales remained close to the figures recorded in the same month of the previous year.
Strong Growth in North American and European Markets
July’s auto export figures were part of a broader trend of increased exports for South Korea, which overall reached US$98.89 billion—the second-highest monthly total on record—marking a 62.8% rise from the previous year. Vehicles contributed US$6.24 billion to this total. Other key exports included semiconductors at US$41.01 billion and ships at US$3.29 billion. Out of the top 20 export categories, 19 experienced year-on-year growth in July, including automobiles.
This positive data coincided with a meeting held on Aug. 13 involving government officials and industry representatives to review the sector’s conditions. Participants included Hyundai Motor, GM Korea, KG Mobility, and Renault Korea, along with industry and research groups. The discussions focused on July’s export trends, the transition toward future vehicle technologies, and collaboration with parts suppliers. The official July data revealed simultaneous growth in automobile exports, domestic vehicle sales, and production, with eco-friendly models playing a significant role in both export value and domestic demand.