SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s automotive exports increased by 7.0% compared to the previous year, reaching a record-high value of US$6.24 billion. This figure represents the highest export amount ever recorded for July. The Ministry of Trade, Industry and Resources announced that exports surpassed the prior July record of US$5.90 billion set in 2023. The exports for July 2025 were US$5.83 billion. Additionally, domestic vehicle sales experienced a slight increase of 0.5%, totaling 139,000 units, while vehicle production grew by 11.3% to reach 352,000 units.
Eco-friendly vehicles played a significant role in driving South Korea’s auto exports during the month. Their export value rose by 25.5% year-on-year to US$2.59 billion. Exports of electric and hydrogen vehicles climbed 31.9% to US$940 million, while hybrid vehicle exports increased by 22.2%, reaching US$1.65 billion. Conversely, exports of internal combustion engine vehicles declined by 3.1%, totaling US$3.65 billion. In July, eco-friendly models made up approximately 41.5% of the country’s total vehicle export value.
North America remained South Korea’s primary regional market, with exports rising 18.0% to US$3.25 billion. Shipments to the European Union increased by 23.5%, amounting to US$880 million. Exports to the Middle East went up by 12.7% to US$430 million, marking their first year-on-year growth in eight months. Meanwhile, exports to Asia decreased by 27.1%, and shipments to Central and South America fell by 7.4%. The regional data indicated the strongest growth in North America, the European Union, and the Middle East.
Eco-friendly vehicles drive July export growth
The Ministry attributed the rise in exports during July to an increased number of working days and persistent overseas demand for eco-friendly vehicles and SUVs. Automakers adjusted their summer holiday schedules from July in 2025 to August in 2026, resulting in more working days during that month. Correspondingly, higher production levels followed this calendar shift, with output increasing 11.3% year-on-year to 352,000 vehicles. In June, production reached 394,000 units, up 11.6% from the previous year.
The domestic auto market saw 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, representing roughly 60% of the market. Electric vehicle sales alone surged 47.5% to 36,000 units, making eco-friendly models about three out of five vehicles sold domestically in July. Overall, total domestic vehicle sales remained close to those of the same month last year.
Strong growth observed in North American and European markets
These automotive figures contributed to a broader upward trend in South Korean exports for July. The total value of goods exported reached US$98.89 billion, marking the second-highest monthly record and 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, while ship exports 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 statistics emerged during a meeting on Aug. 13 involving government officials and industry representatives to review the conditions within the automotive sector. Participants included Hyundai Motor, GM Korea, KG Mobility, and Renault Korea, alongside industry and research groups. The discussion centered on July’s auto market trends, the transition toward future vehicles, and collaboration with parts suppliers. The official data for July showed concurrent gains in automobile exports, domestic sales, and production, with eco-friendly models making up a significant share of both export value and domestic demand.