SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s automotive export revenue reached US$6.24 billion, marking a 7.0% increase compared to the same month last year. This figure set a new record for July and surpassed the previous high of US$5.90 billion recorded in 2023. According to the Ministry of Trade, Industry and Resources, there were notable improvements across exports, manufacturing, and domestic sales. Vehicle production grew 11.3% to approximately 352,000 units, while domestic sales rose marginally by 0.5% to 139,000 units.
A significant portion of the export growth was driven by environmentally friendly vehicles. Their overseas sales value increased by 25.5% year-on-year, reaching US$2.59 billion. Exports of electric and hydrogen vehicles rose 31.9% to US$940 million, while hybrid vehicle exports saw a 22.2% increase to US$1.65 billion. Conversely, exports of traditional internal combustion engine vehicles declined by 3.1% to US$3.65 billion. Eco-friendly cars made up around 41.5% of South Korea’s total automobile export value for July.
North America continued to be the primary destination for Korean vehicle exports, with shipments climbing 18.0% to US$3.25 billion. Exports to the European Union grew by 23.5%, totaling US$880 million. Shipments to the Middle East amounted to US$430 million, representing a 12.7% increase from July 2025, ending a streak of seven consecutive months of year-on-year declines in that region. Conversely, exports to Asia fell by 27.1%, and those to Central and South America decreased by 7.4%.
Eco-friendly vehicles bolster export expansion
The rise in July’s production also reflected adjustments to the industry’s summer working calendar. Major automakers shifted vacation periods from July last year to August this year, resulting in additional working days during the month. As a result, output reached about 352,000 vehicles, supported by factory operations that lasted longer than in July 2025. Hyundai Motor was among the key manufacturers participating in industry discussions concerning the sector’s monthly performance and production conditions.
Domestic demand remained relatively stable despite the sharp increase in lower-emission vehicle sales. In July, South Korean consumers purchased roughly 84,000 eco-friendly vehicles, which is a 14.6% rise from the previous year. These models constituted approximately 60% of all vehicles sold domestically. Battery electric vehicle sales alone increased by 47.5%, reaching 36,000 units. Overall, domestic auto sales totaled 139,000 vehicles, reflecting a modest 0.5% growth compared to July 2025.
Strong performance in North America and Europe
The July data highlighted a clear dichotomy: higher demand for eco-friendly models contrasted with weaker exports of conventional vehicles. Hybrids led the green export sector with a value of US$1.65 billion, while electric and hydrogen vehicles contributed an additional US$940 million. Together, these categories pushed the total green vehicle exports past US$2.5 billion for the month. In comparison, traditional internal combustion engine vehicle exports remained larger in absolute figures at US$3.65 billion despite experiencing a year-on-year decline.
Thus, South Korea’s auto industry experienced concurrent growth in exports, manufacturing, and domestic sales in July. Overseas demand was particularly strong in North America, with the European Union and Middle East also reporting double-digit increases. The share of eco-friendly vehicles in both exports and domestic sales expanded, supported by increased shipments of hybrids and electric vehicles. The July figures further revealed regional disparities, with declines in Asia and Central and South America offsetting gains elsewhere.