SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s vehicle exports reached a total of US$6.24 billion, marking a 7.0% increase from the same month in the previous year. This achievement not only set a new record for July but also surpassed the previous high of US$5.90 billion recorded in 2023. According to the Ministry of Trade, Industry and Resources, the growth was reflected across exports, manufacturing, and local sales. Vehicle production rose by 11.3% to approximately 352,000 units, while domestic sales saw a slight uptick of 0.5%, totaling 139,000 vehicles.
The surge in exports was largely driven by a significant increase in eco-friendly vehicle shipments. Their export value jumped 25.5% year-on-year to US$2.59 billion. Specifically, exports of electric and hydrogen vehicles grew 31.9% to US$940 million, and hybrid vehicle exports increased 22.2% to US$1.65 billion. Conversely, traditional internal combustion engine vehicles saw a decline of 3.1%, amounting to US$3.65 billion. Eco-friendly models accounted for roughly 41.5% of South Korea’s overall automobile export value in July.
North America remained the leading destination for Korean exports, with shipments rising 18.0% to US$3.25 billion. Exports to the European Union also saw substantial growth, increasing 23.5% to US$880 million. Middle Eastern shipments reached US$430 million, up 12.7% from July 2025, ending a streak of seven consecutive months of year-on-year declines in that region. Meanwhile, exports to Asia fell 27.1%, and shipments to Central and South America decreased 7.4%.
Eco-friendly vehicles drive export expansion
The rise in production during July was partly influenced by a shift in the industry’s summer schedule. Major automakers rescheduled their vacation periods from July last year to August this year, resulting in more working days for the month. As a consequence, factory output increased to around 352,000 vehicles, as plants operated for longer periods than in July 2025. Hyundai Motor was among the key manufacturers involved in industry discussions regarding the sector’s monthly performance and manufacturing conditions.
Domestic demand remained relatively stable even as the sales of lower-emission vehicles surged. In July, South Korean consumers bought approximately 84,000 eco-friendly vehicles, which is a 14.6% rise compared to the previous year. These models made up about 60% of all vehicles sold domestically. Battery electric vehicle sales grew 47.5% to 36,000 units. Overall, domestic auto sales reached 139,000 vehicles, a modest increase of 0.5% from July 2025.
Strong performances in North America and Europe
The July data clearly show a divergence: while demand for eco-friendly vehicles was robust, exports of conventional models declined. Hybrids accounted for the largest share of green vehicle exports at US$1.65 billion, with electric and hydrogen models adding another US$940 million. Collectively, these categories pushed the value of eco-friendly vehicle exports past US$2.5 billion for the month. Despite this, traditional internal combustion engine vehicle exports remained higher in absolute terms at US$3.65 billion, despite experiencing a year-on-year drop.
Thus, South Korea’s auto sector experienced simultaneous growth in exports, manufacturing output, and local sales in July. North America continued to be the primary market for exports, while both the European Union and Middle East regions posted double-digit gains. The increase in eco-friendly vehicles’ share of both export and domestic sales was supported by higher shipments of hybrids and electric models. The July figures also highlight regional disparities, with declines in Asia and Central and South America partially offsetting the overall positive trend.