Korea has been the world's fifth largest car manufacturer for nine years, but the number of cars made in the country fell 0.9 percent last year while global production rose 2.7 percent.
China maintained the top spot for five straight years, followed by the U.S., Japan and Germany.
The Korea Automobile Manufacturers Association said Korea manufactured 4.52 million cars last year to rank fifth in the world. Overseas production by Korean companies was included.
The number of cars made by Korean automakers accounted for 5.2 percent of global production. After the number peaked at 5.8 percent in 2011, it has declined for two straight years.
India came sixth, followed by Brazil, Mexico, Thailand and Canada.
Meanwhile, the number of cars manufactured worldwide rose 2.7 percent from 2012 to 87.38 million units last year, due to growing sales in China and the U.S.