SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s vehicle exports reached a new high of US$6.24 billion, marking a 7.0% increase compared to the same month last year. This figure surpasses the previous July record of US$5.90 billion set in 2023, according to the Ministry of Trade, Industry and Resources. The rise was driven by growth across exports, manufacturing, and domestic sales. Vehicle production grew by 11.3% to approximately 352,000 units, while local sales edged higher by 0.5%, reaching 139,000 vehicles.
The surge in exports was largely fueled by eco-friendly vehicles. Their international sales value increased 25.5% year on year to US$2.59 billion. Exports of electric and hydrogen vehicles rose 31.9% to US$940 million, while hybrid vehicle exports expanded 22.2% to US$1.65 billion. Conversely, exports of traditional internal combustion engine vehicles declined by 3.1%, totaling US$3.65 billion. Eco-friendly models made up about 41.5% of South Korea’s total automobile export value in July.
North America continued to be the leading destination for Korean vehicle exports, with shipments increasing 18.0% to US$3.25 billion. Exports to the European Union also saw a notable rise of 23.5%, reaching US$880 million. Shipments to the Middle East hit US$430 million, up 12.7% from July 2025, ending a seven-month streak of year-on-year declines in the region. Meanwhile, exports to Asia declined by 27.1%, and shipments to Central and South America fell 7.4%.
Eco-friendly vehicles underpin export growth
The higher production levels in July also reflected adjustments in the industry’s summer working calendar. Major automakers shifted vacation schedules from July last year to August this year, resulting in more working days during the month. Consequently, vehicle output increased to about 352,000 units as factories operated longer than in July 2025. Hyundai Motor was among the key manufacturers involved in industry discussions regarding the sector’s monthly performance and manufacturing conditions.
Despite these export gains, domestic demand remained relatively stable even as sales of lower-emission vehicles surged. In July, South Korean consumers purchased approximately 84,000 eco-friendly vehicles, up 14.6% from the previous year. These models accounted for around 60% of all vehicles sold domestically. Battery electric vehicle sales alone jumped 47.5%, reaching 36,000 units. Overall, domestic auto sales totaled 139,000 vehicles, reflecting a modest 0.5% growth compared to July 2025.
Strong performances in North America and Europe
The July data revealed a clear divergence: demand for eco-friendly models was robust, while exports of conventional vehicles declined. Hybrids represented the largest portion of eco-friendly exports, generating US$1.65 billion. Electric and hydrogen vehicles contributed an additional US$940 million. Collectively, these categories pushed green vehicle exports above US$2.5 billion for the month. In contrast, traditional vehicle exports, despite their decline, remained larger in absolute value at US$3.65 billion.
Overall, South Korea’s automotive sector experienced simultaneous growth in exports, manufacturing output, and domestic sales during July. Demand was strongest in North America, while the European Union and the Middle East also posted double-digit gains. The increasing share of eco-friendly vehicles in exports and domestic sales was driven by rising shipments of hybrids and electric models. Regional disparities were evident, with declines in Asia and Central and South America partially offsetting gains elsewhere, as reflected in the July figures.