SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s vehicle exports rose by 7.0% compared to the previous year, reaching a total of US$6.24 billion. This figure not only set a new record for July but also surpassed the prior high of US$5.90 billion registered in 2023. The Ministry of Trade, Industry and Resources reported increases across exports, production, and local sales, with vehicle manufacturing climbing 11.3% to approximately 352,000 units and domestic sales edging up 0.5% to 139,000 vehicles.
A significant portion of the export growth was driven by eco-friendly vehicles, whose overseas sales value surged 25.5% year on year to US$2.59 billion. Exports of electric and hydrogen vehicles increased 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 3.1% to US$3.65 billion. In July, eco-friendly models made up approximately 41.5% of South Korea’s total automobile export value.
North America remained the primary destination for Korean vehicle exports, with shipments rising 18.0% to US$3.25 billion. Exports to the European Union increased by 23.5% to US$880 million, while shipments to the Middle East reached US$430 million, a 12.7% rise from July 2025. This growth ended seven consecutive months of year-on-year declines in the region. Conversely, exports to Asia fell 27.1%, and those to Central and South America decreased 7.4%.
Eco-friendly vehicles bolster export figures
The rise in production during July was also influenced by a shift in the industry’s summer operating schedule, as major automakers moved their vacation periods from July last year to August this year, leading to more working days in July. As a result, factory output increased to about 352,000 vehicles, with factories operating longer than in July 2025. Hyundai Motor was among the key manufacturers participating in discussions about the industry’s monthly performance and production conditions.
Despite these shifts, domestic demand remained relatively stable even as sales of lower-emission vehicles surged. In July, South Korean consumers purchased roughly 84,000 eco-friendly vehicles, representing a 14.6% increase from the previous year. These models accounted for around 60% of all vehicles sold domestically. Battery electric vehicle sales grew 47.5% to 36,000 units, contributing to the overall domestic auto sales of 139,000 vehicles, which marked a modest 0.5% growth compared to July 2025.
Strong performance in North America and Europe
The July data highlighted a distinct divergence: robust demand for eco-friendly models contrasted with declining exports of conventional vehicles. Hybrids held the largest share of eco-friendly export value at US$1.65 billion, with electric and hydrogen vehicles adding another US$940 million. Collectively, these segments boosted green vehicle exports above US$2.5 billion for the month. Meanwhile, conventional vehicle exports, though declining 3.1% year on year, remained the largest in absolute terms at US$3.65 billion.
Overall, South Korea’s auto industry experienced simultaneous growth in exports, manufacturing, and domestic sales in July. The strongest overseas demand was observed in North America, with the European Union and Middle East also posting double-digit increases. The share of eco-friendly vehicles in both exports and local sales increased, driven by higher shipments of hybrids and electric models. Regional performance, however, varied significantly, with declines in Asia and Central and South America offsetting some of the gains elsewhere.