The number of cars manufactured in South Korea fell at the fastest pace among the top 10 carmaking nations in the first quarter, data showed Wednesday.

According to the Korea Automobile Manufacturers Association, the country produced close to 1.05 million vehicles in the first three months of this year, a 2.8 percent decrease from a year ago. The percentage of production decline was the lowest among the world’s 10 car manufacturing countries. Of the top 10, only three countries saw a decline in their production rate, including Canada with a 2.5 percent decrease and the US with 2.1 percent.

The drop in auto output could also threaten South Korea’s position as the world’s sixth-largest producer. The country was the world’s fifth-largest automaker in 2005 and kept the rank until 2015, before it was replaced by India.

It also remains uncertain how long South Korea can keep its current position as No. 6, with Mexico catching up in terms of auto production. The Central American country produced 994,560 units, up 18.2 percent from a year ago. Furthermore, the gap between South Korea and India is widening, with India manufacturing over 1.24 million units, a 9.7 percent increase in the January-March period.

It would be difficult to boost South Korea’s auto production in the near future with the cost of raw materials rising and domestic demand slowing, said Lee Hang-ku, a senior researcher at the Korea Institute for Industrial Economics and Trade. 

By Cho Chung-un (christory@heraldcorp.com)