SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s automobile export revenue reached a historic high of US$6.24 billion, marking a 7.0% increase compared to the same month last year. This figure surpasses the previous July record of US$5.90 billion set in 2023, as reported by the Ministry of Trade, Industry and Resources. The report highlighted positive trends across exports, production, and domestic sales, with vehicle manufacturing rising 11.3% to approximately 352,000 units and domestic sales growing marginally by 0.5% to 139,000 vehicles.
A significant portion of the export growth was driven by eco-friendly vehicles, whose overseas sales value jumped 25.5% year on year to US$2.59 billion. Exports of electric and hydrogen vehicles increased 31.9% to US$940 million, while hybrid vehicle exports saw a 22.2% rise to US$1.65 billion. Conversely, conventional internal combustion engine vehicle exports declined by 3.1% to US$3.65 billion. Eco-friendly models accounted for roughly 41.5% of South Korea’s total automobile export value in July.
North America continued to be the primary market for Korean vehicle exports, with shipments increasing 18.0% to US$3.25 billion. Exports to the European Union rose by 23.5% to US$880 million. Meanwhile, exports to the Middle East reached US$430 million, representing a 12.7% rise from July 2025, ending a seven-month streak of year-on-year decline in the region. Conversely, exports to Asia fell by 27.1%, and shipments to Central and South America decreased by 7.4%.
Eco-friendly Vehicles Drive Export Expansion
The increase in vehicle production during July also reflected adjustments in the industry’s summer operating schedule, as major automakers shifted their vacation periods from July last year to August this year, resulting in more working days within the month. As a result, output reached around 352,000 vehicles, with factories operating longer hours than in July 2025. Hyundai Motor was among the key manufacturers involved in industry discussions concerning the sector’s monthly performance and production conditions.
Domestic demand remained relatively stable even as sales of low-emission vehicles surged. South Korean consumers purchased approximately 84,000 eco-friendly vehicles in July, a 14.6% increase from the previous year, with these models making up about 60% of all vehicles sold domestically. Battery electric vehicle sales jumped 47.5%, reaching 36,000 units. Overall, domestic auto sales amounted to 139,000 vehicles, reflecting a modest 0.5% growth compared to the same period in 2025.
Strong Performances in North America and Europe
The July data clearly indicated a divergence in market trends, with robust demand for eco-friendly models contrasting with declining exports of traditional vehicles. Hybrids contributed the most to the eco-friendly export segment, generating US$1.65 billion, while electric and hydrogen models added another US$940 million. Collectively, these categories pushed green vehicle exports above US$2.5 billion for the month. Despite this, conventional vehicle exports still dominated in absolute terms, totaling US$3.65 billion, even with their year-on-year decline.
Overall, South Korea’s auto sector experienced concurrent growth in exports, manufacturing output, and domestic sales in July. The strongest overseas demand remained in North America, while the European Union and Middle East also experienced double-digit improvements. The increase in eco-friendly vehicles’ share of both exports and domestic sales was supported by rising shipments of hybrids and electric models. Regional performance, however, showed considerable variation, with declines in Asia and Central and South America partially offsetting gains elsewhere.