SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s automobile export revenue increased by 7.0% year on year, reaching a total of US$6.24 billion, marking the highest export value ever recorded for the month of July. The Ministry of Trade, Industry and Resources announced that these figures surpassed the previous July record of US$5.90 billion set in 2023, with July 2025 exports totaling US$5.83 billion. Domestic vehicle sales saw a modest rise of 0.5%, totaling 139,000 units, while manufacturing output climbed 11.3% to 352,000 vehicles.
The strongest contribution to South Korea’s auto export growth in July came from eco-friendly vehicle segments, whose export value surged 25.5% compared to the previous year, reaching US$2.59 billion. Specifically, exports of electric and hydrogen vehicles increased by 31.9% to US$940 million, and hybrid vehicle exports grew by 22.2% to US$1.65 billion. Meanwhile, shipments of internal combustion engine vehicles declined by 3.1%, totaling US$3.65 billion. Notably, eco-friendly models represented approximately 41.5% of the nation’s total automobile export value for July.
North America remained the primary regional destination, with exports climbing 18.0% to US$3.25 billion, as detailed in exports. Additionally, exports to the European Union increased by 23.5% to US$880 million, and shipments to the Middle East rose 12.7% to US$430 million, marking their first year-on-year rise in eight months. In contrast, exports to Asia fell by 27.1%, while those to Central and South America declined 7.4%. The regional data indicated that North America, the European Union, and the Middle East experienced the most significant gains in July.
Eco-friendly vehicles drive July export growth
The ministry attributed the July export increase to an increase in operational days and sustained overseas demand for eco-friendly vehicles and SUVs. Automakers adjusted their summer holiday schedules from July in 2025 to August in 2026, which resulted in more working days during the month. Correspondingly, higher production levels followed this calendar shift, with output rising 11.3% year on year to 352,000 vehicles; June’s production had reached 394,000 vehicles, reflecting an 11.6% increase from the previous year.
In contrast, South Korea’s domestic vehicle market experienced a smaller growth, with sales increasing by 0.5% from July 2025 to 139,000 units, where eco-friendly vehicles accounted for 84,000 of those sales, roughly 60% of the domestic market. Electric vehicle sales alone surged 47.5% to 36,000 units, making eco-friendly models about three in every five vehicles sold domestically during July. Overall, domestic vehicle sales remained close to the same level as in July of the previous year.
Strong performances in North America and Europe
These automotive results are part of a broader trend of increased South Korean exports in July, with total goods exports reaching US$98.89 billion — the second-highest monthly total on record and a 62.8% increase compared to the previous year. Automobiles contributed US$6.24 billion to this figure, alongside semiconductor exports totaling US$41.01 billion and ship exports reaching US$3.29 billion. Nineteen of the country’s 20 primary export categories experienced year-on-year growth during July, with automobiles among them.
The data came shortly after a meeting held on Aug. 13 between government officials and industry representatives to evaluate the state of South Korea’s automobile sector. Attendees included Hyundai Motor, GM Korea, KG Mobility, and Renault Korea, alongside industry and research groups. Discussions focused on July’s automotive trends, the shift toward future-oriented vehicles, and collaboration with parts suppliers. The official data highlighted concurrent year-on-year increases in automobile exports, domestic vehicle sales, and manufacturing output, with eco-friendly vehicles playing a substantial role in both export revenue and domestic demand.