SEOUL, SOUTH KOREA / RankWire.AI / – According to the Ministry of Trade, Industry and Resources, South Korea’s car exports surged 7.0% compared to the same month last year, totaling US$6.24 billion in July 2026. This figure marks a new record for July and surpasses the previous high of US$5.90 billion set in 2023. The agency also reported growth across export, manufacturing, and local sales metrics. Vehicle production climbed 11.3% to approximately 352,000 units, while domestic sales saw a modest increase of 0.5% to 139,000 vehicles.
A significant portion of the export growth in July was driven by eco-friendly vehicles. Their overseas sales value increased by 25.5% year-on-year to US$2.59 billion. Exports of electric and hydrogen vehicles rose by 31.9% to US$940 million, and hybrid vehicle exports grew 22.2% to US$1.65 billion. Conversely, traditional internal combustion engine vehicle exports declined by 3.1%, reaching US$3.65 billion. Eco-friendly models accounted for approximately 41.5% of South Korea’s total automobile export value in July.
North America continued to be the primary destination for Korean vehicle exports, with shipments increasing 18.0% to US$3.25 billion. Exports to the European Union also expanded by 23.5%, reaching US$880 million. Middle Eastern markets saw shipments totaling US$430 million, up 12.7% from July 2025, ending a seven-month streak of year-on-year declines in that region. Meanwhile, exports to Asia fell by 27.1%, and shipments to Central and South America declined 7.4%.
Eco-friendly vehicles bolster export expansion
The increase in production during July was partly due to a shift in the industry’s summer work calendar. Major automakers rescheduled their vacation periods from July last year to August this year, which resulted in more working days within the month. Factory output reached about 352,000 vehicles as plants operated for longer stretches than in July 2025. Hyundai Motor was among the leading manufacturers involved in sector discussions regarding the monthly performance and manufacturing conditions.
Domestic demand remained relatively stable, despite a sharp rise in sales of lower-emission vehicles. South Korean consumers bought approximately 84,000 eco-friendly vehicles in July, reflecting a 14.6% increase from the previous year. These vehicles made up around 60% of total domestic vehicle sales. Battery electric vehicle sales alone climbed 47.5%, totaling 36,000 units. Overall, domestic auto sales reached 139,000 vehicles, representing a slight 0.5% growth compared to July 2025.
North American and European markets experience notable gains
The July data reveals a clear contrast between rising demand for eco-friendly models and declining exports of traditional vehicles. Hybrids accounted for the largest share of eco-friendly export value at US$1.65 billion. Electric and hydrogen-powered vehicles contributed an additional US$940 million. These categories collectively pushed green vehicle exports over US$2.5 billion in July. Despite this, conventional vehicle exports remained dominant in dollar terms at US$3.65 billion, although they decreased compared to the previous year.
Overall, South Korea’s auto industry experienced concurrent growth in exports, production, and domestic sales during July. The strongest demand was observed in North America, with the European Union and Middle Eastern markets also registering double-digit increases. Eco-friendly vehicles gained market share both in exports and domestic sales, supported by increased shipments of hybrids and electric models. The July figures highlight regional disparities, with declines in Asia and Central and South America offsetting some of the gains elsewhere.