SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s automobile exports increased by 7.0% compared to the same month last year, reaching a total of US$6.24 billion. This figure represents the highest export value ever recorded for July. The Ministry of Trade, Industry and Resources noted that exports exceeded the previous July record of US$5.90 billion set in 2023. In comparison, exports in July 2025 amounted to US$5.83 billion. Domestic vehicle sales also experienced a slight rise of 0.5%, totaling 139,000 units, while production increased significantly by 11.3%, reaching 352,000 vehicles.
The strongest contribution to South Korea’s auto export growth in July came from eco-friendly vehicles. Their export value surged 25.5% year on year to US$2.59 billion. Exports of electric and hydrogen vehicles grew by 31.9% to US$940 million, while hybrid vehicle exports increased by 22.2% to US$1.65 billion. Conversely, exports of internal combustion engine vehicles declined by 3.1%, totaling US$3.65 billion. Eco-friendly models made up approximately 41.5% of the country’s total automobile export value in July.
North America remained the leading regional destination, with exports rising 18.0% to US$3.25 billion. Shipments to the European Union also grew by 23.5%, reaching US$880 million. Exports to the Middle East increased 12.7% to US$430 million, marking their first year-on-year increase in eight months. Meanwhile, exports to Asia fell by 27.1%, and shipments to Central and South America declined by 7.4%. The regional data highlighted the most notable gains in North America, the European Union, and the Middle East.
Eco-friendly Vehicles Drive July Export Growth
The Ministry attributed the July export increase to a higher number of operating days and sustained overseas 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 within the month. This calendar shift also led to higher production, which rose 11.3% year on year to 352,000 vehicles, following an earlier June figure of 394,000 units, reflecting an 11.6% increase from the previous year.
South Korea’s domestic auto market experienced a smaller growth, with vehicle sales increasing by 0.5% to 139,000 units compared to July 2025. Eco-friendly vehicles accounted for 84,000 of those sales, roughly 60% of the market share. Electric vehicle sales saw a significant rise of 47.5%, reaching 36,000 units. Consequently, eco-friendly models comprised approximately three out of every five vehicles sold domestically during July. Overall, domestic vehicle sales remained close to the levels seen in the same month last year.
Strong Gains in North American and European Markets
The auto sector’s performance was part of a broader upward trend in South Korea’s export activity during July. Total goods exports hit 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, while shipped goods valued at US$3.29 billion were recorded for ships. Nineteen of the country’s 20 main export categories saw year-on-year growth in July, including automobiles.
The data emerged as government and industry representatives convened on Aug. 13 to assess conditions across the auto sector. Participants included Hyundai Motor, GM Korea, KG Mobility, and Renault Korea, along with industry and research groups. Discussions centered on July auto export trends, the shift towards future-oriented vehicles, and collaboration with parts suppliers. The official data for July confirmed concurrent 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.