South Korea's automobile production shrank slightly from a year earlier in July as a cut in exports more than offset a growth in domestic sales, the government said Sunday.

In July, the country's overall output of cars came to 404,770 units, down 1.1 percent from the same month last year, according to the Ministry of Trade, Industry and Energy.

Outbound shipments slipped 2 percent on-year to 258,781 cars, while domestic sales of locally produced cars rose 5 percent to 133,795.

The cut in exports was largely attributed to slow demand in newly emerging markets.

"Despite a growth in shipments to North American states, the country's auto exports dropped 2 percent from the same month last year due to economic slumps in newly emerging markets, such as Russia, while the weak Japanese yen and the euro also ate into the price competitiveness of South Korean cars," the ministry said in a press release.

Domestic sales of imported vehicles, on the other hand, again posted double-digit growth, jumping 22.8 percent on-year to 23,104 cars in July. (Yonhap)