SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s vehicle exports hit a new high of US$6.24 billion, marking a 7.0% increase compared to the same month last year. This figure not only set a new record for July but also surpassed the previous July record of US$5.90 billion set in 2023. The Ministry of Trade, Industry and Resources reported positive results across exports, manufacturing, and domestic sales. Vehicle production grew by 11.3% to approximately 352,000 units, while domestic sales experienced a slight rise of 0.5%, reaching 139,000 vehicles.
During the month, eco-friendly vehicles played a significant role in the export growth. Their total 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, while hybrid vehicle exports grew 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 represented roughly 41.5% of South Korea’s total automotive export value in July.
North America continued to be the primary destination for Korean vehicle exports, with shipments increasing by 18.0% to US$3.25 billion. Exports to the European Union saw a rise of 23.5%, reaching US$880 million. Additionally, shipments to the Middle East reached US$430 million, up 12.7% from July 2025, ending a streak of seven consecutive months of year-on-year declines in the region. In contrast, exports to Asia declined by 27.1%, and shipments to Central and South America fell by 7.4%.
Eco-friendly Vehicles Drive Export Expansion
The production increase in July also reflected a shift in the industry’s summer work schedule, with major automakers rescheduling vacations from July last year to August this year, thereby increasing working days. As a result, output reached about 352,000 vehicles, benefiting from longer factory operations compared to July 2025. Hyundai Motor was among the key manufacturers involved in discussions regarding the sector’s monthly performance and manufacturing conditions.
Despite the surge in eco-friendly vehicle exports, domestic demand remained relatively stable. Consumers in South Korea purchased around 84,000 eco-friendly vehicles in July, which is a 14.6% increase from the previous year. These models accounted for approximately 60% of all vehicles sold domestically. Battery electric vehicle sales soared by 47.5%, reaching 36,000 units. Overall, domestic auto sales for July reached 139,000 vehicles, a modest increase of 0.5% compared to the same month in 2025.
North America and Europe Show Notable Growth
The July data highlighted a clear divergence: stronger demand for eco-friendly models contrasted with weaker exports of conventional vehicles. Hybrids captured the largest share of eco-friendly export value, totaling US$1.65 billion. Electric and hydrogen models contributed an additional US$940 million. Combined, these categories pushed South Korea’s green vehicle exports past US$2.5 billion for the month. Despite this, traditional internal combustion engine vehicle exports remained higher in total at US$3.65 billion, despite experiencing a year-on-year decrease.
Overall, South Korea’s auto industry experienced growth in exports, manufacturing output, and domestic sales during July. The strongest overseas demand was observed in North America, with the European Union and the Middle East also registering double-digit increases. The rise in eco-friendly vehicle exports and sales was driven by increased shipments of hybrids and electric models. However, regional performance varied, with declines in Asia and Central and South America offsetting some of the gains achieved elsewhere.