SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s vehicle exports experienced a 7.0% year-on-year growth, reaching a record-high value of US$6.24 billion. This figure marked the highest export total ever recorded for July. According to the Ministry of Trade, Industry and Resources, the exports surpassed the previous July record of US$5.90 billion set in 2023, with July 2025 exports amounting to US$5.83 billion. Domestic vehicle sales saw a modest increase of 0.5%, totaling 139,000 units, while production climbed 11.3% to 352,000 vehicles.
Eco-conscious vehicles played a key role in boosting South Korea’s auto exports during this period. Their export value grew by 25.5% compared to the previous year, reaching US$2.59 billion. Exports of electric and hydrogen vehicles rose by 31.9% to US$940 million, while hybrid vehicle exports increased by 22.2%, totaling US$1.65 billion. Conversely, shipments of internal combustion engine vehicles declined by 3.1%, amounting to US$3.65 billion. Notably, eco-friendly models represented approximately 41.5% of the country’s total automobile export value in July.
North America remained the primary regional destination for South Korean autos, with exports climbing 18.0% to US$3.25 billion. Exports to the European Union grew by 23.5% to US$880 million. Shipments to the Middle East increased 12.7% to US$430 million, marking their first year-on-year growth in eight months. Meanwhile, exports to Asia declined by 27.1%, and shipments to Central and South America dropped by 7.4%. The strongest regional gains were observed in North America, the European Union, and the Middle East.
Eco-friendly vehicle exports drive July’s positive trend
The ministry attributed the surge in July exports to an increase in working days and sustained overseas demand for eco-friendly vehicles and SUVs. The change in automakers’ summer vacation schedules—from July in 2025 to August in 2026—resulted in more operational days within the month. Correspondingly, production also rose, with output increasing 11.3% year on year to 352,000 vehicles. In June, production had reached 394,000 units, reflecting an 11.6% rise from the previous year.
South Korea’s domestic auto market saw a smaller rise 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 local market. Electric vehicle sales surged by 47.5%, reaching 36,000 units. As a result, eco-friendly models accounted for about three out of every five vehicles sold domestically in July. Overall, total domestic vehicle sales remained near the same level as in the same month the previous year.
Strong growth observed in North American and European markets
The July automotive export figures contributed to a broader upward trend in South Korean exports, which totaled US$98.89 billion—its second-highest monthly value on record and a 62.8% increase from the previous year. Automobiles alone contributed US$6.24 billion to this total. Exports of semiconductors reached US$41.01 billion, while ship exports amounted to US$3.29 billion. Out of the country’s 20 main export categories, 19 experienced year-on-year growth in July, including the automobile sector.
These figures coincided with a meeting held on August 13 between government officials and industry representatives to evaluate the conditions within the auto sector. Attendees included Hyundai Motor, GM Korea, KG Mobility, and Renault Korea, along with industry and research groups. Discussions focused on the July auto market trends, the transition toward future vehicles, and collaborations with parts suppliers. The official data for July revealed simultaneous year-on-year gains in auto exports, domestic vehicle sales, and production, with eco-friendly models representing a significant share of both export value and local demand.
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