SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s automobile export value surged by 7.0% compared to the same month last year, reaching US$6.24 billion. This milestone set a new record for July and surpassed the previous high of US$5.90 billion set in 2023. The Ministry of Trade, Industry and Resources reported increases across exports, production, and domestic sales figures. Vehicle manufacturing grew by 11.3% to approximately 352,000 units, while local sales experienced a slight rise of 0.5%, totaling 139,000 vehicles.
Much of the export growth during this period was driven by eco-friendly vehicles. Their overseas sales value climbed 25.5% year on year to US$2.59 billion. Exports of electric and hydrogen-powered vehicles increased by 31.9% to US$940 million, while hybrid vehicle exports went up 22.2% to US$1.65 billion. Conversely, traditional internal combustion engine vehicle exports 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 remained the leading market for Korean vehicle exports, with shipments increasing 18.0% to US$3.25 billion. Exports to the European Union also grew by 23.5%, reaching US$880 million. Shipments to the Middle East amounted to US$430 million, up 12.7% from July 2025, ending a streak of seven consecutive months of year-on-year declines in the region. Conversely, exports to Asia fell by 27.1%, and shipments to Central and South America decreased 7.4%.
Eco-friendly vehicles drive export expansion
The increase in production during July also reflected adjustments in the industry’s summer operational calendar. Major automakers shifted their holiday schedules from July last year to August this year, resulting in more working days for the month. As a result, output rose to approximately 352,000 vehicles, with factories operating for longer periods than in July 2025. Hyundai Motor participated in industry discussions concerning the sector’s monthly performance and manufacturing conditions.
Domestic demand remained relatively stable, despite a sharp rise in lower-emission vehicle sales. In July, South Korean consumers purchased around 84,000 eco-friendly vehicles, a 14.6% increase compared to the previous year. These models accounted for nearly 60% of all vehicles sold domestically. Battery electric vehicle sales rose 47.5%, reaching 36,000 units. Overall domestic auto sales reached 139,000 vehicles, reflecting a modest 0.5% growth from the same month in 2025.
Strong performances in North America and Europe
The July data highlighted a clear divergence between higher demand for eco-friendly models and weaker exports of conventional vehicles. Hybrids led the green vehicle export segment, generating US$1.65 billion. Electric and hydrogen vehicles contributed an additional US$940 million. Collectively, these categories pushed eco-friendly vehicle exports above US$2.5 billion for the month. Meanwhile, traditional internal combustion engine vehicles maintained a larger export value at US$3.65 billion, despite experiencing a year-on-year decline.
Overall, South Korea’s auto industry experienced concurrent growth in exports, manufacturing output, and domestic sales throughout July. Demand remained strongest in North America, with the European Union and Middle East also seeing double-digit increases. The share of eco-friendly vehicles in both exports and domestic sales expanded, bolstered by rising shipments of hybrids and electric models. Regional variations were notable, as declines in Asia and Central and South America partially offset gains elsewhere.