SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s automobile exports surged 7.0% year-on-year to total US$6.24 billion, setting a new record for the month and surpassing the previous July high of US$5.90 billion in 2023. The Ministry of Trade, Industry and Resources reported increases across exports, manufacturing, and domestic sales. Vehicle production grew by 11.3% to approximately 352,000 units, while local sales experienced a marginal rise of 0.5%, reaching 139,000 vehicles.
A significant portion of the export growth was driven by eco-friendly vehicles. Their export value increased by 25.5% compared to the previous year, reaching US$2.59 billion. Exports of electric and hydrogen vehicles jumped 31.9% to US$940 million, while hybrid vehicle exports rose 22.2% to US$1.65 billion. Conversely, traditional internal combustion engine vehicle exports declined 3.1%, amounting 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 vehicles, with shipments increasing 18.0% to US$3.25 billion. Exports to the European Union also saw a 23.5% rise, totaling US$880 million. Shipments to the Middle East reached US$430 million, up 12.7% from July 2025, ending a seven-month streak of year-on-year declines in the region. Meanwhile, exports to Asia fell by 27.1%, and shipments to Central and South America decreased 7.4%.
Eco-friendly vehicles drive export expansion
The increase in production during July also reflected changes to the industry’s summer operational schedule, with major automakers shifting vacation periods from July last year to August this year, resulting in more working days in July. Factory output reached about 352,000 vehicles, benefiting from extended operation hours compared to July 2025. Hyundai Motor participated in industry discussions regarding the sector’s monthly performance and production conditions.
Domestic demand remained relatively stable even as sales of lower-emission vehicles grew sharply. Consumers in South Korea purchased around 84,000 eco-friendly cars in July, a 14.6% increase from the previous year. These models accounted for approximately 60% of all vehicles sold domestically. Battery electric vehicle sales climbed 47.5%, totaling 36,000 units. Overall, domestic auto sales reached 139,000 vehicles, reflecting a slight 0.5% growth from the same month in 2025.
Strong performance in North America and Europe
The July data highlighted a clear divergence: robust demand for eco-friendly vehicles contrasted with weaker exports of traditional models. Hybrids led the eco-friendly export segment, generating US$1.65 billion, while electric and hydrogen vehicles contributed an additional US$940 million. Combined, these categories propelled green vehicle exports above US$2.5 billion for the month. Despite this, conventional vehicles still accounted for the majority of exports at US$3.65 billion, despite experiencing a year-on-year decline.
Overall, South Korea’s auto sector experienced simultaneous growth in exports, manufacturing, and domestic sales in July. North America remained the strongest market, with the EU and Middle East also recording double-digit gains. The share of eco-friendly vehicles increased both in exports and domestic markets, supported by higher shipments of hybrids and electric models. However, regional performance varied significantly, with declines in Asia and Central and South America partially offsetting the positive trends elsewhere.