SEOUL, SOUTH KOREA / RankWire.AI / – The Ministry of Trade, Industry and Resources announced that South Korea’s automobile exports increased by 7.0% year on year to reach US$6.24 billion in July 2026. This figure represents the highest export value ever recorded for the month of July. The ministry noted that exports exceeded the previous July record of US$5.90 billion, which was set in 2023. In comparison, July 2025 exports totaled US$5.83 billion. Domestic vehicle sales saw a slight rise of 0.5%, totaling 139,000 units, while production jumped 11.3% to 352,000 vehicles.
Eco-friendly vehicles played a significant role in boosting South Korea’s auto exports during the month. Their export value surged 25.5% from the previous year to 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. Conversely, exports of internal combustion engine vehicles declined 3.1% to US$3.65 billion. Notably, eco-friendly models made up approximately 41.5% of the nation’s total automobile export value in July.
North America remained the primary regional market, with exports rising 18.0% to US$3.25 billion. Shipments to the European Union increased by 23.5% to US$880 million. Exports to the Middle East went up 12.7%, reaching US$430 million, marking their first year-on-year increase in eight months. Meanwhile, exports to Asia decreased by 27.1%, and shipments to Central and South America fell by 7.4%. The data highlights the strongest gains in North America, the European Union, and the Middle East regions.
Eco-friendly vehicles drive July export growth
The ministry attributed the surge in July exports to an increased number of operating days and sustained international demand for eco-friendly vehicles and SUVs. The shift in major automakers’ summer vacation schedules—from July in 2025 to August in 2026—resulted in more working days during the month. This change also contributed to higher production, which rose 11.3% year on year to 352,000 vehicles. In June, production was at 394,000 units, an 11.6% increase from the previous year.
South Korea’s domestic auto market experienced a smaller growth compared to exports and production, with vehicle sales increasing by 0.5% to 139,000 units in July 2026. Eco-friendly vehicles accounted for 84,000 of these sales, roughly 60% of the domestic market. Electric vehicle sales alone jumped 47.5% to 36,000 units. As a result, eco-friendly models made up about three out of every five vehicles sold domestically in July. Despite these changes, total domestic vehicle sales remained nearly identical to those in the same month of the previous year.
North America and Europe report robust export increases
The automobile sector’s performance contributed to an overall rise in South Korean exports during July. Total goods exports reached US$98.89 billion, marking the second-highest monthly total on record and representing a 62.8% increase from the previous year. Automotive exports contributed US$6.24 billion to this total. Other notable exports included semiconductors at US$41.01 billion and ships at US$3.29 billion. Nineteen of the country’s 20 main export categories saw year-on-year growth in July, including automobiles.
These figures followed a meeting on Aug. 13 involving government and industry representatives to assess the current state of South Korea’s automotive sector. Attendees included Hyundai Motor, GM Korea, KG Mobility, Renault Korea, along with industry and research groups. Discussions covered July’s auto export trends, the shift toward future-oriented vehicles, and collaboration with parts suppliers. The official July data revealed concurrent year-on-year gains in automobile exports, domestic vehicle sales, and production, with eco-friendly models playing a significant role in both export value and domestic demand.