SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s vehicle exports increased by 7.0% compared to the same month last year, reaching a record high of US$6.24 billion. This marks the largest export value ever recorded for July. According to the Ministry of Trade, Industry and Resources, exports surpassed the previous July record of US$5.90 billion set in 2023. The July 2025 exports totaled US$5.83 billion. Domestic vehicle sales saw a slight rise of 0.5%, totaling 139,000 units. Meanwhile, production increased by 11.3% to 352,000 vehicles.
Eco-friendly vehicles played a key role in boosting South Korea’s auto exports for the month. Their export value jumped 25.5% year on year to US$2.59 billion. Electric and hydrogen vehicle exports grew 31.9% to US$940 million. Hybrid vehicle exports rose 22.2%, reaching US$1.65 billion. Conversely, exports of internal combustion engine vehicles declined by 3.1%, totaling US$3.65 billion. In July, eco-friendly models made up about 41.5% of the country’s total vehicle export value.
North America remained South Korea’s primary export destination, with shipments rising 18.0% to US$3.25 billion. Exports to the European Union increased by 23.5%, reaching US$880 million. The Middle East saw a 12.7% increase, with exports totaling US$430 million, their first year-on-year rise in eight months. Exports to Asia dropped by 27.1%, while shipments to Central and South America fell 7.4%. Overall, the strongest gains were recorded in North America, the EU, and the Middle East.
Eco-friendly vehicles drive July’s export success
The ministry attributed the export growth to more operational days and persistent overseas demand for eco-friendly vehicles and SUVs. Major automakers shifted their summer vacation schedules from July in 2025 to August in 2026. This change increased the number of working days in July. Production also grew, rising 11.3% year on year to 352,000 vehicles. In June, production reached 394,000 units, up 11.6% compared to the previous year.
South Korea’s domestic car market grew at a smaller pace. Vehicle sales increased by 0.5% from July 2025 to 139,000 units. Eco-friendly vehicles accounted for 84,000 of those sales, roughly 60% of the market. Electric vehicle sales surged 47.5%, reaching 36,000 units. As a result, about three out of five vehicles sold domestically in July were eco-friendly models. Overall, total domestic vehicle sales remained close to the same level as in the same month last year.
Strong export increases seen in North America and Europe
The auto export figures contributed to a broader rise in South Korean exports during July. Total goods exports hit US$98.89 billion, the second-highest monthly total ever and up 62.8% from the previous year. Vehicles contributed US$6.24 billion to this total. Exports of semiconductors reached US$41.01 billion, while ship exports totaled US$3.29 billion. Nineteen of South Korea’s twenty main export categories experienced year-on-year growth in July, including automobiles.
These results came amid a meeting held on Aug. 13 involving government and industry representatives. Hyundai Motor, GM Korea, KG Mobility and Renault Korea attended along with industry and research groups. Discussions focused on July auto trends, the shift towards future vehicles, and collaboration with parts suppliers. The official July data confirmed simultaneous year-on-year growth in exports, domestic sales, and vehicle production. Eco-friendly models played a significant role in both export value and domestic market share.