SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s automotive export figures reached a new high of US$6.24 billion, marking a 7.0% increase compared to the same month last year. This milestone surpasses the previous July record of US$5.90 billion set in 2023. According to the Ministry of Trade, Industry and Resources, the month saw positive gains across exports, manufacturing, and local sales. Vehicle production climbed 11.3% to approximately 352,000 units, while domestic sales edged up by 0.5% to 139,000 units.
Much of the export growth was driven by eco-friendly vehicles, whose international sales increased by 25.5% year-on-year to US$2.59 billion. Specifically, exports of electric and hydrogen vehicles grew 31.9% to US$940 million, and hybrid vehicle exports rose 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 vehicles accounted for approximately 41.5% of South Korea’s total car export value in July.
North America continued to be the primary destination for Korean automotive exports, with shipments increasing 18.0% to US$3.25 billion. Exports to the European Union also saw a rise of 23.5%, reaching US$880 million. Shipments to the Middle East totaled US$430 million, which is a 12.7% increase from July 2025, ending a streak of seven consecutive months of year-on-year declines in the region. Meanwhile, exports to Asia declined by 27.1%, and shipments to Central and South America fell 7.4%.
Eco-friendly vehicle exports fuel overall growth
The rise in production during July also reflects a shift in the industry’s summer schedule, with major automakers shifting their vacation periods from July last year to August this year, resulting in more working days in July. As a result, production increased to around 352,000 vehicles, with factories operating longer than in July 2025. Hyundai Motor was among the key manufacturers involved in industry discussions regarding the sector’s monthly performance and production conditions.
Despite the growth in exports and factory output, domestic demand remained relatively steady, even as sales of lower-emission vehicles surged. In July, South Korean consumers purchased about 84,000 eco-friendly vehicles, which is a 14.6% increase from a year earlier. These models made up roughly 60% of all vehicles sold domestically. Battery electric vehicle sales rose 47.5%, reaching 36,000 units. Overall, domestic auto sales totaled 139,000 vehicles, reflecting a modest 0.5% increase compared to July 2025.
Strong performances seen in North America and Europe
The July data highlighted a clear divergence: demand for eco-friendly vehicles remained robust, while exports of conventional cars declined. Hybrids accounted for the largest share of eco-friendly export value at US$1.65 billion, with electric and hydrogen models adding another US$940 million. These categories together pushed green vehicle exports above US$2.5 billion for the month. Nonetheless, conventional vehicle exports stayed larger in absolute terms at US$3.65 billion, despite their year-on-year decrease.
Overall, South Korea’s auto sector experienced simultaneous growth in exports, manufacturing output, and domestic sales in July. North America demonstrated the strongest overseas demand, while the European Union and Middle East also registered double-digit increases. The expansion of eco-friendly vehicle exports and sales, notably hybrids and electric models, played a significant role in this upward trend. However, regional differences were notable, with declines in Asia and Central and South America partly offsetting gains elsewhere.