SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s automobile exports increased by 7.0% year on year to reach US$6.24 billion, setting a new record for the month of July. The Ministry of Trade, Industry and Resources announced that exports surpassed the previous July high of US$5.90 billion, established in 2023. Meanwhile, exports for July 2025 totaled US$5.83 billion. Domestic vehicle sales grew slightly by 0.5% to 139,000 units, with production also climbing 11.3% to 352,000 vehicles.
The surge in eco-friendly vehicle exports was a key driver of South Korea’s overall export growth for the month. Their export value jumped 25.5% from the previous year to US$2.59 billion. Electric and hydrogen vehicles saw a 31.9% increase to US$940 million, while hybrid vehicle exports rose 22.2% to US$1.65 billion. Conversely, exports of internal combustion engine vehicles declined by 3.1% to US$3.65 billion. Eco-friendly models made up approximately 41.5% of the nation’s total automobile export value in July.
North America maintained its position as the top regional destination, with exports rising 18.0% to US$3.25 billion. Shipments to the European Union increased 23.5% to US$880 million, and exports to the Middle East grew 12.7% to US$430 million, marking their first year-on-year rise in eight months. In contrast, exports to Asia fell 27.1%, and shipments to Central and South America decreased by 7.4%. The regional data highlighted the strongest gains in North America, the European Union, and the Middle East.
Eco-friendly Vehicles Drive July Export Expansion
The Ministry attributed the July export increase to a higher number of operating days and ongoing international demand for eco-friendly vehicles and SUVs. Automakers shifted their summer vacation schedules from July in 2025 to August in 2026, which extended the working period for the month. This calendar shift contributed to the rise in production, which climbed 11.3% year on year to 352,000 units. Production in June reached 394,000 vehicles, up 11.6% from the previous year.
Meanwhile, South Korea’s domestic auto market saw a smaller rise, with vehicle sales increasing 0.5% to 139,000 units compared to July 2025. Eco-friendly vehicles comprised 84,000 of these sales, approximately 60% of the market. Electric vehicle sales alone grew 47.5% to 36,000 units. As a result, eco-friendly models accounted for roughly three out of five vehicles sold domestically during July, with overall domestic sales remaining close to the same level as the previous year.
Strong Growth Continues in North America and Europe
The positive auto export figures contributed to a broader upward trend in South Korean exports for July. Total goods exports reached US$98.89 billion, marking the second-highest monthly total ever and representing a 62.8% increase from the prior year. Automobiles contributed US$6.24 billion to this figure. Exports of semiconductors reached US$41.01 billion, while ship exports amounted to US$3.29 billion. Among the top 20 export categories, 19 saw year-on-year growth in July, with automobiles included.
These results coincided with a meeting on Aug. 13 involving government officials and industry representatives to assess the automotive sector’s status. Hyundai Motor, GM Korea, KG Mobility, and Renault Korea participated alongside industry and research groups. Discussions focused on July’s auto trends, the shift toward future-oriented vehicles, and collaboration with parts suppliers. The July data showed simultaneous growth in exports, domestic sales, and production, with eco-friendly models playing a significant role in both export value and local demand.