SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s automobile exports reached a record high of US$6.24 billion, reflecting a 7.0% increase compared to the same month last year. This figure set a new record for July exports. The Ministry of Trade, Industry and Resources reported that these exports exceeded the previous July record of US$5.90 billion, established in 2023. The exports for July 2025 were US$5.83 billion. Domestic vehicle sales experienced a slight rise of 0.5%, totaling 139,000 units, while vehicle production surged by 11.3% to reach 352,000 units.
Eco-friendly vehicles played a significant role in boosting South Korea’s auto exports in July, with their export value increasing by 25.5% year-on-year to US$2.59 billion. Exports of electric and hydrogen vehicles grew by 31.9%, reaching US$940 million. Hybrid vehicle exports increased by 22.2% to US$1.65 billion. Meanwhile, exports of internal combustion engine vehicles declined by 3.1%, totaling US$3.65 billion. Eco-friendly models represented approximately 41.5% of the country’s total automobile export value in July.
North America remained the primary regional destination, with exports climbing 18.0% to US$3.25 billion. Shipments to the European Union rose by 23.5%, amounting to US$880 million. Exports to the Middle East increased by 12.7% to US$430 million, marking their first year-on-year rise in eight months. Conversely, exports to Asia decreased by 27.1%, and shipments to Central and South America fell by 7.4%. The data highlighted North America, the European Union, and the Middle East as the regions with the strongest growth during the month.
Eco-friendly vehicles drive July export improvements
The Ministry attributed the growth in exports during July to an increased number of operating days and ongoing international demand for eco-friendly vehicles and SUVs. Automakers shifted their summer holiday schedules from July in 2025 to August in 2026, resulting in more working days in July. The higher output was also influenced by this calendar shift, with vehicle production rising by 11.3% year-on-year to 352,000 units. In June, production had reached 394,000 units, which was an 11.6% increase from the previous year.
South Korea’s home market saw a smaller gain compared to exports and production, with vehicle sales increasing by 0.5% from July 2025 to 139,000 units. Eco-friendly vehicles made up 84,000 of those sales, roughly 60% of the domestic market. Electric vehicle sales grew by 47.5%, reaching 36,000 units. During July, eco-friendly models accounted for about three-fifths of all vehicles sold domestically. Overall, total domestic vehicle sales remained close to the same level as the previous year’s July figures.
North American and European markets experience notable growth
The automobile sector’s performance contributed to a broader upward trend in South Korea’s exports for July. Total goods exports hit US$98.89 billion, the second-highest monthly total on record, representing a 62.8% increase over the previous year. Automobiles accounted for US$6.24 billion of this total. Semiconductor exports reached US$41.01 billion, while shipments of ships totaled US$3.29 billion. Out of the country’s top 20 export categories, 19 experienced year-on-year growth in July, including automobiles.
These figures coincided with a meeting on Aug. 13 between government officials and industry representatives to review conditions within the auto sector. Hyundai Motor, GM Korea, KG Mobility, and Renault Korea participated alongside industry and research groups. Discussions focused on July’s export trends, the transition to future vehicles, and collaboration with parts suppliers. The official data for July showed simultaneous year-on-year increases in exports, domestic vehicle sales, and production, with eco-friendly models representing a significant share of both export value and local demand.