South Korea's automobile production dropped to seventh place globally in 2024 due to sluggish domestic demand.

According to a report released on Monday by the Korea Automobile Manufacturers Association(KAMA) titled "2024 Global Automobile Production Status and Implications," global automobile production fell by zero-point-five percent compared to the previous year, totaling 93-point-95 million units.

This marks the first decline since 2020, when production sharply dropped by 15-point-four percent due to the COVID-19 pandemic.

The global production decline was mainly attributed to production setbacks in Japan, Thailand, Spain and South Korea.

South Korean automobile production decreased by two-point-seven percent on-year, recording four-point-13 million units, causing the country to drop to 7th place in global production rankings.

Although exports increased by zero-point-six percent, domestic sales fell to their lowest level since 2013, leading to the overall decline in production.

The report said U.S. tariffs and China's increasing dominance in the global automotive market could cut into exports this year. 

The top four countries—China, the United States, Japan, and India— accounted for 59-point-seven percent of global automobile production.