SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s automotive export value increased by 7.0% compared to the same month last year, reaching US$6.24 billion. This marks a new record for July and surpasses the previous high of US$5.90 billion set in 2023. According to the Ministry of Trade, Industry and Resources, there were notable improvements in exports, manufacturing, and local sales. Vehicle production grew by 11.3% to approximately 352,000 units, while domestic sales saw a slight rise of 0.5%, totaling 139,000 units.
A significant portion of the export growth was driven by eco-friendly vehicles. Their overseas sales value increased by 25.5% year-on-year, reaching US$2.59 billion. Exports of electric and hydrogen vehicles surged by 31.9%, amounting to US$940 million. Hybrid vehicle exports rose by 22.2% to US$1.65 billion. Conversely, exports of traditional internal combustion engine vehicles declined by 3.1%, totaling US$3.65 billion. Eco-friendly models made up roughly 41.5% of South Korea’s total car export value in July.
North America continued to be the primary market for Korean vehicles, with exports increasing by 18.0% to US$3.25 billion. Exports to the European Union also saw growth, climbing 23.5% to US$880 million. Shipments to the Middle East reached US$430 million, up 12.7% from July 2025. This growth ended a streak of seven consecutive months of year-on-year declines in the region. Meanwhile, exports to Asia decreased by 27.1%, and those to Central and South America fell by 7.4%.
Eco-friendly Vehicles Drive Export Expansion
The production increase in July also reflected adjustments to the industry’s summer holiday schedule. Major automakers shifted their vacation periods from July last year to August this year, resulting in more working days during the month. As a result, factory output rose to about 352,000 vehicles, with plants operating longer than in July 2025. Hyundai Motor was among the key manufacturers involved in discussions about the sector’s monthly performance and production conditions.
Despite the rise in vehicle output, domestic demand remained fairly stable, even as sales of lower-emission vehicles grew sharply. In July, South Korean consumers purchased around 84,000 eco-friendly vehicles, an increase of 14.6% from the previous year. These models accounted for approximately 60% of all vehicles sold domestically. Battery electric vehicle sales alone increased by 47.5%, reaching 36,000 units. Overall, domestic auto sales totaled 139,000 units, representing a modest 0.5% rise from July 2025.
Strong Performance in North America and Europe
The July data clearly show a divide between the robust demand for eco-friendly models and the weaker exports of conventional vehicles. Hybrids accounted for the largest share of green vehicle export value at US$1.65 billion. Electric and hydrogen vehicles contributed an additional US$940 million. Combined, these categories pushed South Korea’s green vehicle exports above US$2.5 billion in July. Meanwhile, conventional vehicle exports remained larger in absolute terms at US$3.65 billion despite experiencing a decline compared to the previous year.
Overall, South Korea’s automotive sector experienced simultaneous growth in exports, manufacturing output, and domestic sales during July. North America emerged as the strongest market for overseas demand, while the European Union and Middle East also reported double-digit increases. Eco-friendly vehicles gained a larger share of both exports and domestic sales, supported by increased shipments of hybrids and electric models. The data for July also indicated significant regional variation, with declines in Asia and Central and South America offsetting gains elsewhere.