India Replaces south Korea as World's No. 5 Auto Producer

India overtook South Korea as the world's fifth biggest producer of automobiles in the first seven months of this year, industry data showed Sunday.

It is the first time in 12 years that South Korea has lost the No. 5 spot. If the trend continues, South Korea would be in danger of losing the No. 5 spot on an annual basis this year, South Korea's news agency (Yonhap) reported.

In the first seven months of the year, the country's accumulated auto production stood at 2.55 million units, fewer than 2.57 million units by India. South Korea lost the No. 5 spot in 2002 but regained it in 2005. 

Last year, South Korea's annual auto production stood at 4.55 million units, compared with 4.12 million units by India. Auto production in the second half of the year is expected to lose further steam as tax incentives ended and the union of Hyundai Motor is on an intermittent strike. 

In August, South Korea's auto production stood at 217,097 units, compared with 387,704 units by India. Illustrating woes faced by the South Korean auto industry, the union of industry leader Hyundai Motor said Sunday it will stage a full-scale one-day strike Monday and six-hour partial strikes for the rest of this week, escalating its bid for higher salaries and benefits. 

In August, Hyundai Motor's management and union leaders struck a deal to raise the monthly base pay of an employee by 58,000 won (US$52). Each worker will also receive 350 percent of the base monthly payment and an additional 3.3 million won in performance incentives.

But unionized Hyundai workers voted down the tentative wage-hike agreement late last month, demanding far higher raises in pay and benefits. 

Source : XINHUA