SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s vehicle exports saw a 7.0% increase compared to the same month last year, reaching a total of US$6.24 billion. This achievement marks a new record for July and surpasses the previous high of US$5.90 billion set in 2023. The Ministry of Trade, Industry and Resources reported positive developments across export figures, manufacturing output, and local sales. Vehicle production grew by 11.3%, totaling approximately 352,000 units, while domestic sales saw a slight uptick of 0.5%, reaching 139,000 vehicles.
Much of the export growth in July can be attributed to increased sales of environmentally friendly vehicles. Their overseas revenue rose 25.5% year-on-year to US$2.59 billion. Specifically, exports of electric and hydrogen vehicles increased by 31.9%, amounting to US$940 million, while hybrid vehicle exports grew by 22.2%, reaching US$1.65 billion. Conversely, exports of traditional internal combustion engine vehicles declined by 3.1% to US$3.65 billion. Eco-friendly models constituted approximately 41.5% of South Korea’s total automobile exports in July.
The primary destination for Korean vehicle exports continued to be North America, with shipments rising 18.0% to US$3.25 billion. Export figures to the European Union also experienced growth, increasing 23.5% to US$880 million. Middle Eastern markets received US$430 million worth of vehicles, up 12.7% from July 2025, ending a streak of seven consecutive months of year-on-year declines in the region. Meanwhile, exports to Asian markets fell by 27.1%, and shipments to Central and South America decreased by 7.4%.
Eco-friendly vehicle exports drive overall growth
The rise in vehicle production during July also reflects adjustments in the industry’s summer holiday schedule, as leading automakers shifted vacation periods from July last year to August this year, resulting in more working days during the month. As a result, factory output increased to about 352,000 vehicles, with plants operating longer than in July 2025. Hyundai Motor participated in industry discussions regarding the sector’s monthly performance and manufacturing conditions during this period.
While domestic demand remained relatively stable, sales of lower-emission vehicles surged. Consumers in South Korea purchased roughly 84,000 eco-friendly vehicles in July, marking a 14.6% increase from the previous year. These models made up about 60% of all vehicles sold domestically. Battery electric vehicle sales alone jumped 47.5%, reaching 36,000 units. Overall, domestic auto sales for July reached 139,000 units, reflecting a modest 0.5% growth compared to the same month in 2025.
Strong performances in North America and Europe
The July data clearly indicate a divergence: robust demand for eco-friendly vehicles contrasted with a decline in conventional vehicle exports. Hybrids led the eco-friendly segment with a total export value of US$1.65 billion, while electric and hydrogen models contributed an additional US$940 million. Collectively, these categories pushed green vehicle exports above US$2.5 billion for the month. Despite this, traditional internal combustion engine vehicle exports remained larger in absolute terms, amounting to US$3.65 billion, despite their year-on-year drop.
Overall, South Korea’s auto sector experienced concurrent growth in exports, manufacturing output, and domestic sales during July. North America remained the top overseas market, while the European Union and Middle East also recorded double-digit increases. Eco-friendly vehicle sales expanded their market share both internationally and domestically, driven by higher shipments of hybrids and electric vehicles. The regional analysis shows considerable variation, with declines in Asian and Central and South American markets offsetting gains elsewhere.