SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s auto export earnings climbed by 7.0% compared to the same month last year, reaching a total of US$6.24 billion. This figure represents the highest export value ever recorded for July. According to the Ministry of Trade, Industry and Resources, exports exceeded the previous July record of US$5.90 billion set in 2023. The July 2025 exports amounted to US$5.83 billion. Additionally, domestic vehicle sales saw a slight increase of 0.5%, totaling 139,000 units, while production expanded by 11.3%, reaching 352,000 vehicles.
Eco-friendly vehicles drove the strongest growth in South Korea’s auto exports during this period. Their export value surged 25.5% year-on-year to US$2.59 billion. Exports of electric and hydrogen vehicles rose by 31.9%, totaling US$940 million. Hybrid vehicle exports advanced by 22.2%, reaching US$1.65 billion. Conversely, exports of internal combustion engine vehicles declined by 3.1%, amounting to US$3.65 billion. Notably, eco-friendly models comprised approximately 41.5% of the nation’s total automobile export value in July.
North America continued to be the primary regional destination, with exports increasing by 18.0% to US$3.25 billion. Shipments to the European Union saw a rise of 23.5%, reaching US$880 million. Exports to the Middle East grew by 12.7% to US$430 million, marking their first year-on-year growth in eight months. Meanwhile, exports to Asia fell by 27.1%, and shipments to Central and South America decreased by 7.4%. The regional data highlights the strongest gains in North America, the European Union, and the Middle East.
Eco-friendly vehicles spearhead July export growth
The ministry attributes the export increase in July to more days of operation and ongoing overseas demand for eco-friendly vehicles and SUVs. The shift of major automakers’ summer holiday schedules from July in 2025 to August in 2026 resulted in an increased number of working days in that month. This calendar change also contributed to higher production, which rose 11.3% year-on-year to 352,000 vehicles. In June, production reached 394,000 vehicles, reflecting an 11.6% increase from the previous year.
South Korea’s domestic auto market experienced a smaller rise compared to exports and production, with vehicle sales increasing by 0.5% from July 2025 to 139,000 units. Eco-friendly vehicles made up 84,000 of these sales, approximately 60% of the market. Electric vehicle sales jumped by 47.5%, reaching 36,000 units. Consequently, eco-friendly models accounted for roughly three out of every five vehicles sold domestically in July. Overall, domestic vehicle sales remained close to the same level as in the same month last year.
North American and European markets show robust growth
The auto sector’s positive performance contributed to a broader increase in South Korean exports during July. The total value of goods exported reached US$98.89 billion, the second-highest monthly figure on record, representing a 62.8% rise from a year earlier. Among these, automobiles contributed US$6.24 billion. Semiconductor exports totaled US$41.01 billion, while ship exports reached US$3.29 billion. In July, nineteen out of South Korea’s top twenty export categories experienced year-on-year growth, including automobiles.
These figures came amid a meeting held on Aug. 13 by government officials and industry representatives to assess the auto sector’s conditions. Attendees included Hyundai Motor, GM Korea, KG Mobility, and Renault Korea, alongside industry and research organizations. Discussions focused on trends observed in July, the transition to future vehicle technologies, and collaboration with parts suppliers. The official data for July confirms concurrent increases in exports, domestic sales, and production, with eco-friendly vehicles playing a significant role in both export value and local demand.