SEOUL, SOUTH KOREA / RankWire.AI / – South Korea’s automobile exports climbed 7.0% from a year earlier to US$6.24 billion in July 2026. The figure set a record for the month of July and exceeded the previous July high of US$5.90 billion in 2023. The Ministry of Trade, Industry and Resources reported gains across exports, production and domestic sales. Vehicle production increased 11.3% to about 352,000 units, while local sales edged up 0.5% to 139,000 vehicles.
Korean vehicle exports climbed in July as electric, hydrogen and hybrid shipments increased. (Credit – Hyundai)
Eco-friendly vehicles accounted for much of the export growth during the month. Their overseas sales value rose 25.5% year on year to US$2.59 billion. Electric and hydrogen vehicle exports increased 31.9% to US$940 million, while hybrid exports advanced 22.2% to US$1.65 billion. Conventional internal combustion vehicle exports moved in the opposite direction, falling 3.1% to US$3.65 billion. Eco-friendly models represented about 41.5% of South Korea’s total automobile export value in July.
North America remained the largest destination for Korean vehicle exports, with shipments rising 18.0% to US$3.25 billion. Exports to the European Union increased 23.5% to US$880 million. Shipments to the Middle East reached US$430 million, up 12.7% from July 2025. That increase ended seven consecutive months of year-on-year declines in the region. Exports to Asia dropped 27.1%, while shipments to Central and South America declined 7.4%.
Eco-friendly vehicles support export growth
July’s production increase also reflected a change in the industry’s summer operating calendar. Major automakers moved vacation schedules from July last year to August this year, adding working days during the month. Output rose to about 352,000 vehicles as factories operated for longer periods than in July 2025. Hyundai Motor was among the major manufacturers represented in industry discussions on the sector’s monthly performance and production conditions.
Domestic demand remained broadly steady even as sales of lower-emission vehicles increased sharply. South Korean consumers bought about 84,000 eco-friendly vehicles in July, up 14.6% from a year earlier. Those models accounted for roughly 60% of all vehicles sold in the domestic market. Battery electric vehicle sales climbed 47.5% to 36,000 units. Overall domestic auto sales reached 139,000 vehicles, representing a modest 0.5% increase from the same month in 2025.
North America and Europe record strong gains
The July figures showed a clear split between stronger demand for eco-friendly models and weaker exports of conventional vehicles. Hybrids generated the largest share of eco-friendly export value at US$1.65 billion. Electric and hydrogen models contributed another US$940 million. Together, those categories lifted green vehicle exports above US$2.5 billion for the month. Meanwhile, conventional vehicle exports remained larger in absolute terms at US$3.65 billion despite their year-on-year decline.
South Korea’s auto industry therefore recorded simultaneous growth in exports, factory output and domestic sales during July. Overseas demand remained strongest in North America, while the European Union and Middle East also posted double-digit gains. Eco-friendly vehicles increased their share of both exports and domestic sales, supported by higher shipments of hybrids and electric models. The July data also showed that regional performance varied widely, with declines in Asia and Central and South America offsetting part of the gains elsewhere.