SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s automobile exports reached a total of US$6.24 billion, marking a 7.0% rise compared to the same month last year. This figure not only set a new record for July but also surpassed the previous high of US$5.90 billion recorded in 2023. According to the Ministry of Trade, Industry and Resources, the country experienced growth across exports, manufacturing, and local sales. Vehicle manufacturing increased by 11.3% to approximately 352,000 units, while domestic sales saw a slight uptick of 0.5%, reaching 139,000 vehicles.
A significant portion of the export growth during the month was 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 rose by 31.9% to US$940 million, and hybrid vehicle exports grew 22.2% to US$1.65 billion. Conversely, traditional internal combustion engine vehicle exports declined by 3.1%, totaling US$3.65 billion. Eco-friendly models constituted approximately 41.5% of South Korea’s overall automobile export value in July.
North America remained the primary destination for Korean exports, with shipments increasing by 18.0% to US$3.25 billion. Exports to the European Union grew by 23.5% to US$880 million, while shipments to the Middle East reached US$430 million, a 12.7% rise from July 2025. This growth ended a seven-month streak of year-on-year declines within the region. Conversely, exports to Asia fell by 27.1%, and shipments to Central and South America declined 7.4%.
Eco-friendly vehicles drive export expansion
The increase in July’s production also reflects a shift in the automotive industry’s summer scheduling. Major automakers transitioned their vacation period from July last year to August this year, leading to more working days in July. As a result, factory output rose to around 352,000 vehicles, with plants operating for longer durations compared to July 2025. Hyundai Motor was among the leading manufacturers involved in industry discussions regarding the sector’s monthly performance and production outlook.
Despite the rise in exports, domestic demand remained relatively stable, even as sales of lower-emission vehicles surged. Consumers in South Korea purchased approximately 84,000 eco-friendly vehicles in July, which is a 14.6% increase from the previous year. These models made up about 60% of all vehicles sold domestically. Battery electric vehicle sales alone jumped 47.5% to 36,000 units. Overall, domestic auto sales for July reached 139,000 vehicles, representing a modest 0.5% increase compared to the same month in 2025.
Strong performances in North America and Europe
The July statistics clearly demonstrate a divergence between rising demand for eco-friendly models and declining exports of conventional vehicles. Hybrids contributed the most to green vehicle export value, amounting to US$1.65 billion, while electric and hydrogen-powered vehicles added another US$940 million. Collectively, these segments propelled eco-friendly vehicle exports to over US$2.5 billion for the month. Nevertheless, traditional internal combustion engine vehicles still held a larger share in absolute terms at US$3.65 billion, despite experiencing a year-on-year decrease.
Consequently, South Korea’s auto industry recorded simultaneous growth in exports, manufacturing output, and domestic sales in July. The strongest foreign demand remained in North America, with notable double-digit gains also observed in the European Union and the Middle East. The increased share of eco-friendly vehicles in both export and domestic markets was driven by higher shipments of hybrids and electric models. However, regional variations were significant, with declines in Asia and Central and South America partially offsetting the overall positive trend in other regions.