Last Month Sees Triple Growth in Auto Exports, Domestic Sales, and Production: "Eco-Friendly Vehicles Lead the Surge"

July Automotive Industry Trends

Exports Reach All-Time High

Strong Performance Driven by Eco-Friendly Vehicles

Ministry of Trade Hosts Meeting with Four Major Carmakers

Second-Half Outlook and Industry Issues Discussed

Last month, both exports, domestic sales, and production of automobiles all increased. Exports, led by eco-friendly vehicles, showed strong performance and reached an all-time high.

According to the Ministry of Trade, Industry and Energy on August 13, automobile exports in July reached USD 6.24 billion, a 7.0% increase compared to the same month of the previous year, setting a new record for July automobile exports. Domestic sales (139,000 units) and production (352,000 units) also grew by 0.5% and 11.3%, respectively.

Export vehicles are waiting to be loaded at Pyeongtaek Port in Gyeonggi Province. Photo by Jinhyung Kang

Exports showed strong growth mainly in eco-friendly vehicles. Exports of eco-friendly vehicles reached USD 2.59 billion, a 25.5% increase from the previous year. Within this category, exports of electric and hydrogen vehicles jumped by 31.9% to USD 940 million, and hybrid vehicles increased by 22.2% to USD 1.65 billion. On the other hand, exports of internal combustion engine vehicles decreased by 3.1% to USD 3.65 billion.

By region, exports increased mainly to key markets such as North America and the European Union (EU). Exports to North America rose 18.0% year-on-year to USD 3.25 billion, while exports to the EU grew 23.5% to USD 880 million. The Ministry of Trade, Industry and Energy attributed the export growth to increased working days resulting from the rescheduling of major automakers' summer vacations (from July 2025 to August 2026) and robust global demand for eco-friendly vehicles and SUVs. In particular, exports to the Middle East increased by 12.7% year-on-year to USD 430 million, turning to growth for the first time in eight months.

Domestic automobile sales last month increased by 0.5% year-on-year to 139,000 units. Total sales of eco-friendly vehicles reached 84,000 units, accounting for about 60% of all domestic sales, indicating continued strong demand for eco-friendly vehicles. Among these, sales of electric vehicles recorded 36,000 units, a 47.5% increase compared to the same period last year.

Automobile production in July increased by 11.3% year-on-year to 352,000 units. The increase in production was supported by additional working days resulting from the shift of major carmakers' summer vacation schedules.

On this day, Dongil Park, policy chief at the Ministry of Trade, Industry and Energy, attended an automobile industry meeting hosted by the Korea Automobile Mobility Industry Association. The meeting was attended by four major automakers—Hyundai Motor, Korea GM, KG Mobility, Renault Korea—as well as the Korea Automobile Manufacturers Association, Korea Automobile Industry Cooperative Association, Korea Automobile Research Institute, and the Korea Institute for Industrial Economics and Trade, along with other related organizations.

At the meeting, Mr. Park stated, "As this is an extraordinary time when the global automotive industry landscape is being reshaped by the transition to future vehicles, the government, automakers, and parts suppliers must unite as one team to overcome challenges together." He also urged automakers to strengthen labor-management communication and cooperation, and called on them to play a leading role in promoting win-win partnerships with auto parts suppliers during the transition to future vehicles and the transition to Automation and X (AX).

This content was produced with the assistance of AI translation services.