SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s automobile shipments increased by 7.0% year on year, reaching a record-high export value of US$6.24 billion for that month. This figure set a new peak for July exports, according to the Ministry of Trade, Industry and Resources. The previous July record of US$5.90 billion was established in 2023. Additionally, exports for July 2025 totaled US$5.83 billion. Meanwhile, domestic vehicle sales saw a slight rise of 0.5%, totaling 139,000 units. Production also grew significantly, increasing by 11.3% to 352,000 vehicles.
The surge in eco-friendly vehicles was the primary driver behind South Korea’s export growth during the month. Their export value jumped by 25.5% compared to the previous year, reaching US$2.59 billion. Electric and hydrogen vehicle exports experienced a 31.9% rise, amounting to US$940 million. Hybrid vehicle exports grew by 22.2%, reaching US$1.65 billion. Conversely, exports of internal combustion engine vehicles declined by 3.1%, totaling US$3.65 billion. Eco-friendly models represented approximately 41.5% of the country’s total automobile export value in July.
North America remained the leading regional market, with exports increasing by 18.0% to US$3.25 billion. Shipments to the European Union went up by 23.5%, reaching US$880 million. Exports to the Middle East rose 12.7% to US$430 million, marking their first year-on-year increase in eight months. Meanwhile, exports to Asia decreased by 27.1%, and shipments to Central and South America declined by 7.4%. The data highlighted the most substantial gains in North America, the European Union, and the Middle East regions.
Eco-friendly vehicles drive July export growth
The Ministry attributed the July export increase to a higher number of operating days and continued international demand for eco-friendly vehicles and SUVs. Automakers shifted their summer holiday schedules from July in 2025 to August in 2026, resulting in more working days within the month. This change also contributed to higher production, which rose 11.3% year on year to 352,000 units. Production in June reached 394,000 vehicles, an increase of 11.6% compared to the previous year.
Domestic vehicle sales in South Korea grew more modestly compared to exports and production, 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 domestic market. Electric vehicles alone saw a 47.5% rise to 36,000 units. As a result, eco-friendly models accounted for about three out of every five vehicles sold domestically in July. Total domestic vehicle sales remained close to the figures recorded in the same month the previous year.
Strong export increases observed in North America and Europe
The automotive sector’s performance was part of a broader uptick in South Korean exports during July. The total value of goods exported reached US$98.89 billion, the second-highest monthly total on record, representing a 62.8% increase from the same period last year. Automobiles contributed US$6.24 billion to this total. Semiconductor exports amounted to US$41.01 billion, while ship exports reached US$3.29 billion. Of the country’s 20 main export categories, 19 experienced year-on-year growth in July, including automobiles.
These figures coincided with a meeting on August 13, where government and industry representatives assessed the state of the automobile sector. Attendees included Hyundai Motor, GM Korea, KG Mobility, and Renault Korea, alongside various industry and research groups. Discussions focused on July’s auto trends, the shift towards future vehicle models, and collaboration with parts suppliers. The official July statistics reflected simultaneous year-on-year increases in exports, domestic sales, and production, with eco-friendly vehicles playing a significant role in both export value and domestic demand.