SEOUL, SOUTH KOREA / RankWire.AI / – South Korea’s vehicle exports hit a new high for July, totaling US$6.24 billion, reflecting a 7.0% increase compared to the same month last year. This record-breaking figure surpasses the previous July record of US$5.90 billion set in 2023, according to the Ministry of Trade, Industry and Resources. In comparison, exports in July 2025 amounted to US$5.83 billion. Domestic vehicle sales also saw a slight rise of 0.5%, reaching 139,000 units, while production increased by 11.3% to 352,000 vehicles.
A key driver behind the export growth was the strong performance of eco-friendly vehicles, which saw a 25.5% year-on-year increase in export value to US$2.59 billion. Electric and hydrogen vehicle shipments grew by 31.9%, reaching US$940 million. Hybrid vehicle exports expanded by 22.2% to US$1.65 billion. Conversely, exports of internal combustion engine vehicles declined by 3.1% to US$3.65 billion. Eco-friendly models made up approximately 41.5% of South Korea’s total vehicle exports in July.
North America remained the primary destination, with exports rising 18.0% to US$3.25 billion. Shipments to the European Union increased by 23.5%, totaling US$880 million. Exports to the Middle East saw a 12.7% increase, reaching US$430 million, marking their first year-on-year growth in eight months. Meanwhile, exports to Asia dropped by 27.1%, and shipments to Central and South America fell by 7.4%. The strongest regional gains were observed in North America, the European Union, and the Middle East.
Eco-friendly vehicles drive July export growth
The Ministry attributes the July export increase to an increased number of operating days and sustained overseas demand for eco-friendly vehicles and SUVs. Automakers shifted their summer vacation schedules from July in 2025 to August in 2026, resulting in more working days during the month. This calendar shift also contributed to higher production, which rose 11.3% year-on-year to 352,000 vehicles. June’s production reached 394,000 units, representing an 11.6% rise from the previous year.
Meanwhile, South Korea’s domestic car market experienced a smaller rise, with vehicle sales up 0.5% from July 2025 to 139,000 units. Eco-friendly vehicles accounted for 84,000 of these sales, approximately 60% of the domestic market. Electric vehicle sales grew by 47.5% to 36,000 units. As a result, eco-friendly models made up about three out of five vehicles sold domestically in July. Overall, domestic vehicle sales remained close to the same level as in the same month last year.
Strong performances in North America and Europe
The July auto export figures contributed to a broader surge in South Korea’s overall goods exports, which reached US$98.89 billion, the second-highest monthly total ever and a 62.8% increase from the previous year. Automobiles alone accounted for US$6.24 billion of this total. Semiconductor exports totaled US$41.01 billion, while shipments of ships amounted to US$3.29 billion. Nineteen of the country’s twenty main export categories experienced year-on-year growth in July, including automobiles.
These figures coincided with a meeting held on Aug. 13 involving government officials and industry representatives to assess the automotive sector’s current state. Hyundai Motor, GM Korea, KG Mobility, and Renault Korea attended along with various industry and research groups. Discussions focused on July’s export trends, the transition towards future vehicle models, and collaboration with parts suppliers. The official data for July showed simultaneous increases in exports, domestic sales, and production, with eco-friendly vehicles playing a significant role in both export value and domestic demand.