SEOUL, SOUTH KOREA / RankWire.AI / – The South Korean automotive sector continues to show robust performance, with exports rising 7.0% compared to the previous year to reach US$6.24 billion in July 2026. This figure marks a new record for the month of July, surpassing the previous high of US$5.90 billion recorded in 2023. According to the Ministry of Trade, Industry and Resources, growth was observed across exports, manufacturing, and domestic sales. Vehicle production increased by 11.3% to approximately 352,000 units, while domestic sales saw a slight uptick of 0.5%, totaling 139,000 vehicles.
A significant portion of the export growth during this period was attributed to eco-friendly vehicles. Their overseas sales value climbed 25.5% year on year, reaching US$2.59 billion. Exports of electric and hydrogen vehicles grew by 31.9% to US$940 million, and hybrid vehicle exports increased 22.2% to US$1.65 billion. Conversely, exports of traditional internal combustion engine vehicles declined by 3.1%, amounting to US$3.65 billion. Eco-friendly cars accounted for approximately 41.5% of South Korea’s total automobile export value in July.
North America remained the top destination for Korean vehicle exports, with shipments rising 18.0% to US$3.25 billion. Exports to the European Union increased by 23.5%, totaling US$880 million. In the Middle East, shipments reached US$430 million, up 12.7% from July 2025, ending a seven-month streak of year-on-year declines in the region. Conversely, exports to Asia declined by 27.1%, and shipments to Central and South America fell by 7.4%.
Eco-friendly vehicles drive export expansion
The rise in production for July was partly due to adjustments in the industry’s summer schedule. Major automakers shifted their holiday periods from July last year to August this year, resulting in more working days during the month. As a result, output climbed to around 352,000 vehicles, with factories operating longer than they did in July 2025. Hyundai Motor was among the key manufacturers involved in industry discussions regarding the sector’s monthly performance and production conditions.
Domestic demand remained relatively stable, despite a sharp increase in sales of lower-emission vehicles. In July, South Korean consumers purchased approximately 84,000 eco-friendly vehicles, representing a 14.6% rise from the previous year. These models made up about 60% of all vehicles sold domestically. Battery electric vehicle sales surged by 47.5%, reaching 36,000 units. Overall, domestic auto sales in July reached 139,000 vehicles, a modest 0.5% increase from the same month in 2025.
Strong performance in North America and Europe
The July data reveals a distinct trend: higher demand for eco-friendly vehicles contrasted with a slowdown in exports of traditional models. Hybrids accounted for the largest share of green vehicle export value at US$1.65 billion, while electric and hydrogen vehicles added another US$940 million. Combined, these categories pushed South Korea’s green vehicle exports past US$2.5 billion in July. Meanwhile, conventional vehicle exports remained the larger segment overall at US$3.65 billion, despite their decline compared to the previous year.
Thus, South Korea’s auto industry experienced simultaneous growth in exports, manufacturing output, and domestic sales during July. Overseas demand was particularly strong in North America, with the European Union and Middle Eastern markets also showing substantial double-digit gains. The increase in eco-friendly vehicle exports was supported by higher shipments of hybrids and electric models. However, regional disparities persisted, with declines in Asia and Central and South America partially offsetting the global growth trend.