India to overtake S. Korea in auto output by 2015

SEOUL, Nov. 26 (Yonhap) -- India is expected to replace South Korea as the
world's fifth-largest car-producing country in 2015 as Hyundai Motor Co. and its
affiliate step up their efforts to boost overseas production, according to
government officials Thursday.
India is likely to produce 4.49 million vehicles in 2015, while South Korea is
expected to produce 4.13 million vehicles for the year, said the Ministry of
Strategy and Finance, citing a recent report by the Organization for Economic
Cooperation and Development.
The figures excluded the estimated numbers of vehicles to be produced in overseas
plants.
For years, Hyundai Motor and its affiliate Kia Motors Corp. have aggressively
pushed to build overseas plants to avoid chronic labor strikes at home and
currency fluctuations.
"Due to high wages and low productivity at home, local carmakers are building
plants overseas," said a government official, adding the move is undermining the
nation's employment and economic recovery.
Hyundai has plants in the United States, China, India, Turkey, the Czech Republic
and Russia. Kia recently started mass production at its first U.S. plant.
Last year, Hyundai's overseas production surpassed exports from local plants for
the first time.
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