Hyundai Motor saw sales jump 37% in July helping South Korean car companies to their first sales increase in nine months.

Hyundai said it sold 262,623 vehicles last month while affiliate Kia Motors boosted sales 20%. Industry-wide sales rose 11%.

Hyundai boosted sales as government subsidies and incentives in the US, China, Germany and South Korea stoked demand for fuel efficient vehicles.

Hyundai's domestic sales of Elantra compacts, Sonata sedans and other models rose 15%, while overseas sales increased 45%. Kia boosted overall sales to 126,857 vehicles.

Combined sales at Hyundai, Kia, Ssangyong, GM Daewoo and Renault Samsung increased to 453,747. Domestic and overseas sales both rose 11%.