SEOUL, SOUTH KOREA / RankWire.AI / – South Korea’s automobile exports increased by 7.0% year on year to reach US$6.24 billion in July 2026. This figure set a new record for the highest export value ever recorded for that month. The Ministry of Trade, Industry and Resources reported that exports surpassed the previous July record of US$5.90 billion, which was established in 2023. In comparison, exports in July 2025 totaled US$5.83 billion. Domestic vehicle sales grew slightly by 0.5%, totaling 139,000 units, while production increased significantly by 11.3% to 352,000 vehicles.
The strongest growth in South Korea’s auto exports during the month came from eco-friendly vehicles. Their export value climbed 25.5% from the previous year to US$2.59 billion. Exports of electric and hydrogen vehicles saw a 31.9% increase, reaching US$940 million, while hybrid exports grew 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 nation’s total automobile export value in July.
North America remained the primary regional destination, with exports rising 18.0% to US$3.25 billion. Shipments to the European Union increased by 23.5%, totaling US$880 million. Exports to the Middle East grew by 12.7% to US$430 million, marking their first year-on-year growth in eight months. Conversely, exports to Asia decreased by 27.1%, and shipments to Central and South America fell 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 more working days and sustained overseas demand for eco-friendly vehicles and SUVs. Major automakers shifted their summer vacation schedules from July in 2025 to August in 2026, resulting in a higher number of operational days during the month. This calendar change also contributed to increased production, which rose 11.3% year on year to 352,000 vehicles. In June, production reached 394,000 units, reflecting an 11.6% rise from the previous year.
South Korea’s domestic auto market experienced a smaller growth compared to exports and production, with vehicle sales increasing by 0.5% to 139,000 units. Eco-friendly vehicles made up 84,000 of these domestic sales, representing about 60% of the market. Electric vehicle sales surged by 47.5%, reaching 36,000 units. As a result, eco-friendly models accounted for roughly three out of every five vehicles sold domestically in July. Overall domestic sales remained close to the levels recorded in the same month last year.
North American and European markets show robust growth
These auto sector results contributed to a broader export growth in South Korea during July. Total goods exports reached US$98.89 billion, marking the second-highest monthly total on record and representing a 62.8% increase from the previous year. Automobiles contributed US$6.24 billion to this total. Exports of semiconductors reached US$41.01 billion, and shipments of ships amounted to US$3.29 billion. Out of the country’s top 20 export categories, 19 experienced year-on-year growth in July, including automobiles.
The figures coincided with a meeting on August 13 between government and industry representatives to evaluate conditions within the auto sector. Hyundai Motor, GM Korea, KG Mobility, and Renault Korea participated alongside industry and research organizations. The discussion focused on July’s auto export trends, the transition toward future vehicle technologies, and collaboration with parts suppliers. The official July data confirmed simultaneous year-on-year increases in automobile exports, domestic vehicle sales, and production, with eco-friendly models forming a significant part of both export value and domestic demand.