India Emerges As 5th Largest Car Maker In The World 2016; Beats South Korea

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As per Korea Automobile Manufacturing Association (KAMA), South Korea has produced 2.55 million cars for the period of January to July 2016. While India produced 2.57 million units for the same period beating South Korea by 20,000 units.

This change in ranking comes after a decade when South Korea maintained the position, now India has pipped it to the spot. A KAMA spokesperson said that the reason is because the demand for cars is increasing steadily in India which is attributed to the economic growth; however, South Korea is experiencing dull domestic consumption and exports.

South Korea could further be beaten by Mexico as Korea's Kia has set up manufacturing plants there. With auto industry hit by strikes and increasing taxes, South Korea has been witnessing downward sales. Strikes were announced over wage increases and the auto industry has been hit by temporary tax cuts on new car purchases.

Currently, the world's leading car makers is led by China, then the United States, Japan and Germany, and South Korea usually rounds off the top five; however, India has beaten it this year.

Read more on: #auto news
Story first published: Wednesday, September 28, 2016, 17:19 [IST]
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