South Korea's auto exports hit record $6.24b in July, highest ever for the month

South Korea's automobile exports surpassed $6.2 billion last month, setting a record for any July. Domestic sales and production also rose in tandem.

According to the Ministry of Trade, Industry and Energy's "July Automotive Industry Trends" report released Thursday, auto exports reached $6.24 billion in July, up 7.0 percent from a year earlier. The figure surpasses the previous July record of $5.9 billion set in 2023.

Eco-friendly vehicles drove the export gains. Exports of eco-friendly vehicles climbed 25.5 percent year-on-year to $2.59 billion, accounting for 41.5 percent of total auto exports.

Within that category, electric and hydrogen vehicles rose 31.9 percent to $940 million, while hybrid vehicles gained 22.2 percent to $1.65 billion. Exports of internal combustion engine vehicles fell 3.1 percent to $3.65 billion.

By region, exports grew in the key markets of North America and the EU. North America exports rose 18.0 percent to $3.25 billion, while EU exports climbed 23.5 percent to $880 million.

The ministry attributed the export growth to an increase in working days — as major automakers shifted their summer shutdowns to August — along with steady demand for eco-friendly vehicles and SUVs.

Exports to Asia fell 27.1 percent and those to Latin America declined 7.4 percent. Middle East exports rose 12.7 percent year-on-year to $430 million, however, reversing an eight-month decline.

Domestic sales last month reached 139,000 units, up 0.5 percent. Eco-friendly vehicles accounted for 84,000 units, or 60 percent of total domestic sales, up 14.6 percent. Electric vehicle sales surged 47.5 percent to 36,000 units.

Among passenger car models, the Tesla Model Y topped domestic sales last month with 8,705 units, edging out the Grandeur at 8,532 units and the Seltos at 7,427 units to reclaim the top spot.

Auto production rose 11.3 percent from a year earlier to 352,000 units, also boosted by the increase in working days.

Meanwhile, the Ministry of Trade, Industry and Energy held a meeting Thursday with representatives from four automakers — Hyundai Motor Company, GM Korea, KG Mobility and Renault Korea — as well as industry associations at the Korea Automobile Manufacturers Association in Seocho-gu, Seoul. Participants discussed the second-half outlook, the transition to future mobility and ways to foster cooperation across the automotive supply chain.

Automakers called on the government for policy support, stressing the importance of maintaining a stable domestic production base of more than 4 million vehicles a year as global competition in the electric vehicle market intensifies.

The industry and government also agreed to work together on transitioning the auto parts sector toward future vehicles and building a cooperative ecosystem between automakers and parts suppliers.