SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s automotive exports experienced a 7.0% year-on-year increase, reaching a total of US$6.24 billion. This figure represents the highest export value ever achieved for the month of July. The Ministry of Trade, Industry and Resources reported that exports surpassed the previous July record of US$5.90 billion set in 2023, with July 2025 exports totaling US$5.83 billion. Domestic vehicle sales also saw a modest growth of 0.5%, amounting to 139,000 units. Meanwhile, production climbed 11.3% to reach 352,000 vehicles.
Eco-friendly vehicles significantly contributed to South Korea’s auto export growth during the month. Their export value rose 25.5% from a year earlier, totaling US$2.59 billion. Exports of electric and hydrogen vehicles increased by 31.9% to US$940 million, while hybrid vehicle exports grew 22.2% to US$1.65 billion. In contrast, exports of internal combustion engine vehicles declined by 3.1%, totaling US$3.65 billion. Eco-friendly models made up about 41.5% of the total automobile export value for July.
The largest regional destination remained North America, with exports rising 18.0% to US$3.25 billion. Shipments to the European Union increased by 23.5% to US$880 million, and exports to the Middle East climbed 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%. Overall, North America, the European Union, and the Middle East showed the strongest growth in regional exports.
Eco-friendly vehicle exports drive July’s growth
The ministry attributed the July export boost to an increased number of working days and sustained overseas demand for eco-friendly vehicles and SUVs. The shift in major automakers’ summer vacation schedules from July in 2025 to August in 2026 extended the working days within that month. Production levels followed the same calendar change, resulting in an 11.3% year-on-year increase 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 uptick compared to exports and production, with vehicle sales increasing by 0.5% from July 2025 to 139,000 units. Eco-friendly vehicles accounted for 84,000 of these domestic sales, roughly 60% of the overall market. Electric vehicle sales saw a significant 47.5% jump, reaching 36,000 units. During July, eco-friendly models comprised about three out of every five vehicles sold domestically. Overall, total domestic vehicle sales remained close to the figures recorded in the same month of the previous year.
Strong growth observed in North America and Europe
These automotive results contributed to a broader upward trend in South Korea’s exports during July. Total goods exports hit US$98.89 billion, marking the second-highest monthly total on record and a 62.8% increase compared to the previous year. Automobiles alone contributed US$6.24 billion to this total. Exports of semiconductors reached US$41.01 billion, while ship exports totaled US$3.29 billion. Nineteen out of the country’s 20 main export categories experienced year-on-year growth in July, including automobiles.
The data was discussed during a meeting on Aug. 13 involving government officials and industry representatives, reviewing conditions across the auto sector. Participants included Hyundai Motor, GM Korea, KG Mobility, and Renault Korea, alongside industry and research groups. Discussions focused on July auto export trends, the transition toward future vehicles, and collaboration with parts suppliers. The official July statistics highlighted simultaneous year-on-year increases in automobile exports, domestic vehicle sales, and production, with eco-friendly models playing a significant role in both export value and domestic demand.