South Korea's automobile exports fell in March as top automaker Hyundai Motor and its affiliate Kia Motors shortened working hours of their employees under an agreement with labor unions, a government report showed Monday.

Automobile exports by the country's five automakers declined 16 percent from a year earlier to 258,067 units in March, according to the Ministry of Trade, Industry and Energy (MOTIE). For the first three months of this year, car exports slid 8.9 percent from a year before.

The fall came after Hyundai and Kia shortened working hours by three hours per day starting March under an agreement with labor unions. The nation's top two carmakers did not carry out extra works on weekends last month, the form of which the management and labor unions are negotiating.

Auto production plunged 13.1 percent from a year earlier to 365, 768 units in March, while domestic car sales fall 0.3 percent to 131,136 units due to positive effect from the launch of new models.

Hyundai and Kia saw their car production plunge 20.7 percent and 10.2 percent each in March from a year before, with their auto exports reducing 29.4 percent and 13.1 percent respectively amid supply disruption from less working hours.