SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s vehicle exports experienced a 7.0% year-on-year increase, reaching a record-high value of US$6.24 billion. This figure set a new peak for exports in the month of July, according to the Ministry of Trade, Industry and Resources. The previous July record was US$5.90 billion, established in 2023, with exports in July 2025 totaling US$5.83 billion. Domestic vehicle sales saw a slight rise of 0.5%, amounting to 139,000 units, while vehicle production climbed notably by 11.3%, totaling 352,000 units.
Eco-friendly vehicle exports played a significant role in boosting South Korea’s auto export figures during the month. Their export value jumped by 25.5% compared to the previous year, reaching US$2.59 billion. Specifically, exports of electric and hydrogen vehicles increased by 31.9%, totaling US$940 million, while hybrid vehicle exports grew by 22.2% to US$1.65 billion. Conversely, exports of internal combustion engine vehicles declined by 3.1%, totaling US$3.65 billion. In July, environmentally friendly models made up approximately 41.5% of South Korea’s total automobile export value.
North America continued to be the primary regional destination for South Korean auto exports, with shipments rising 18.0% to US$3.25 billion. Exports to the European Union also increased significantly by 23.5%, reaching US$880 million. The Middle East saw exports grow by 12.7%, totaling US$430 million, which marked their first year-on-year increase in eight months. Meanwhile, exports to Asia decreased by 27.1%, and shipments to Central and South America fell by 7.4%. The strongest regional gains were observed in North America, the European Union, and the Middle East, according to the latest data.
Eco-friendly vehicles drive July’s export growth
The Ministry attributed the export rise in July to an increased number of operating days and persistent global demand for eco-friendly vehicles and SUVs. Automakers adjusted their summer vacation schedules from July in 2025 to August in 2026, which extended the working days during the month. This shift contributed to higher production levels, with output rising by 11.3% year on year to 352,000 vehicles. The previous month, June, saw production reach 394,000 units, an 11.6% increase compared to the same period last year.
Meanwhile, South Korea’s domestic automotive market experienced a smaller growth compared to exports and production, with vehicle sales increasing by 0.5% from July 2025 to 139,000 units. Of these, eco-friendly vehicles accounted for 84,000 units, approximately 60% of the domestic market. Electric vehicle sales rose sharply by 47.5%, reaching 36,000 units. Consequently, eco-friendly models represented about three out of every five vehicles sold locally during July. Overall, domestic vehicle sales remained close to the levels observed in the same month of the previous year.
Strong growth observed in North American and European markets
The July automotive export results were part of a broader surge in South Korean exports, which totaled US$98.89 billion—marking the second-highest monthly figure on record and a 62.8% increase compared to the previous year. Automobiles contributed US$6.24 billion to this total, alongside US$41.01 billion in semiconductor exports and US$3.29 billion from ship shipments. Out of the country’s top 20 export categories, 19 experienced year-on-year growth in July, with automobiles among them.
The release of these figures coincided with a meeting held on Aug. 13, where government officials and industry representatives reviewed the current state of South Korea’s auto sector. Participants included Hyundai Motor, GM Korea, KG Mobility, and Renault Korea, along with industry and research organizations. They discussed trends from July, the transition toward future vehicle technologies, and collaborations with parts suppliers. The official data for July confirmed simultaneous increases in exports, domestic sales, and production, with eco-friendly models constituting a significant portion of both export value and domestic demand.