SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s vehicle exports surged by 7.0% year-on-year to reach US$6.24 billion, marking the highest monthly total ever recorded for July. This figure surpasses the previous July high of US$5.90 billion set in 2023. The Ministry of Trade, Industry and Resources reported increases across exports, manufacturing, and local sales. Vehicle production rose 11.3% to approximately 352,000 units, while domestic sales edged higher by 0.5%, totaling 139,000 vehicles.
Much of the export growth during this period was driven by eco-friendly vehicles. Their export value jumped 25.5% compared to the previous year, reaching US$2.59 billion. Exports of electric and hydrogen vehicles grew 31.9% to US$940 million, while hybrid vehicle exports increased 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 constituted about 41.5% of South Korea’s total automobile export value in July.
North America remained the primary destination for Korean auto exports, with shipments rising 18.0% to US$3.25 billion. Exports to the European Union increased by 23.5%, reaching US$880 million. Shipments to the Middle East amounted to US$430 million, reflecting a 12.7% rise from July 2025 and ending a streak of seven consecutive months of year-on-year declines in the region. Meanwhile, exports to Asia dropped 27.1%, and those to Central and South America fell 7.4%.
Eco-friendly vehicles drive export expansion
The increase in July’s production also reflects a shift in the industry’s summer operational schedule. Leading automakers shifted their vacation periods from July last year to August this year, resulting in more working days during July. As a result, output reached approximately 352,000 vehicles, benefiting from extended factory operations compared to July 2025. Hyundai Motor was among the key manufacturers involved in discussions regarding the sector’s monthly performance and production conditions.
Domestic demand remained relatively stable despite a sharp rise in sales of lower-emission vehicles. In July, South Korean consumers purchased about 84,000 eco-friendly vehicles, a 14.6% increase from the previous year. These vehicles accounted for roughly 60% of all cars sold locally. Battery electric vehicle sales grew by 47.5%, reaching 36,000 units. Overall, domestic auto sales hit 139,000 vehicles, marking a modest 0.5% increase compared to the same month in 2025.
Strong performance in North America and Europe
The July data reveals a distinct divergence: robust demand for eco-friendly vehicles contrasted with softer exports of conventional models. Hybrids led the eco-friendly export segment, generating US$1.65 billion. Electric and hydrogen vehicle exports contributed an additional US$940 million. Collectively, these categories pushed green vehicle exports above US$2.5 billion for the month. Despite this, traditional internal combustion engine vehicles remained the largest export category in absolute terms at US$3.65 billion, even with a year-on-year decrease.
Thus, South Korea’s auto sector experienced simultaneous growth in exports, manufacturing output, and domestic sales during July. North America continued as the strongest market for exports, while the European Union and Middle East regions also saw double-digit increases. The share of eco-friendly vehicles in both exports and domestic sales expanded, supported by higher shipments of hybrids and electric models. The regional data indicates substantial variation, with declines in Asia and Central and South America offsetting gains elsewhere.