SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s vehicle exports increased by 7.0% year-on-year to reach US$6.24 billion, setting a new monthly record for July and surpassing the previous high of US$5.90 billion in 2023. The Ministry of Trade, Industry and Resources highlighted improvements across exports, manufacturing output, and domestic sales. Vehicle production grew by 11.3% to approximately 352,000 units, while local vehicle sales saw a modest rise of 0.5% to 139,000 units.
A significant portion of the export growth was driven by eco-friendly vehicles, which saw their overseas sales value increase by 25.5% compared to the previous year, reaching US$2.59 billion. Exports of electric and hydrogen-powered vehicles surged by 31.9% to US$940 million, while hybrid exports grew by 22.2% to US$1.65 billion. In contrast, traditional internal combustion engine vehicle exports declined by 3.1% to US$3.65 billion. During July, eco-friendly models accounted for approximately 41.5% of South Korea’s total automobile export value.
North America remained the primary destination for Korean exports, with shipments increasing by 18.0% to US$3.25 billion. Exports to the European Union also grew notably, rising 23.5% to US$880 million. Additionally, exports to the Middle East reached US$430 million, up 12.7% from July 2025, breaking a seven-month streak of year-on-year declines in the region. Conversely, exports to Asia fell by 27.1%, and shipments to Central and South America decreased by 7.4%.
Eco-Friendly Vehicles Drive Export Expansion
The increase in production during July was partly due to shifts in the automotive industry’s summer working calendar. Major automakers rescheduled their vacation periods from July last year to August this year, resulting in more working days in July. As a result, factory output rose to about 352,000 vehicles, with plants operating longer than in July 2025. Hyundai Motor participated in industry discussions concerning the sector’s monthly performance and production conditions during this period.
Domestic market demand remained relatively stable, even as sales of low-emission vehicles surged. Consumers in South Korea purchased around 84,000 eco-friendly vehicles in July, reflecting a 14.6% increase over the previous year. These models made up roughly 60% of all vehicles sold domestically. Battery electric vehicle sales climbed by 47.5% to 36,000 units. Overall, domestic auto sales reached 139,000 vehicles, marking a slight 0.5% rise compared to the same month in 2025.
Solid Gains for North America and Europe
The July data clearly indicated a divergence: demand for eco-friendly vehicles was robust, while exports of traditional models weakened. Hybrid vehicles contributed the most to eco-friendly export revenues at US$1.65 billion, with electric and hydrogen vehicles adding another US$940 million. Collectively, these categories pushed green vehicle exports above US$2.5 billion for the month. Despite this, conventional vehicle exports remained larger in absolute terms at US$3.65 billion, despite a year-on-year decline.
Overall, South Korea’s automotive sector experienced concurrent growth in exports, production, and domestic sales during July. The strongest overseas demand was seen in North America, with the European Union and Middle East also reporting double-digit gains. The share of eco-friendly vehicles in both export and domestic markets increased, driven by higher shipments of hybrids and electric models. The regional performance was diverse, with declines in Asia and Central and South America offsetting some of the overall gains, highlighting the varied dynamics across markets.