* Japan monthly new vehicle sales sees worst drop for Nov
* Hyundai Motor Nov sales up 1.4 pct
* Hundai considers factory shutdown as strike prolongs
* Maruti sales jump; faces pressure from Toyota Etios
* Europe woes hurt Maruti exports, may hit Japan autos
By Hyunjoo Jin and Chang-Ran Kim
SEOUL/TOKYO, Dec 1 (Reuters) - South Korea's top auto brand Hyundai faced a prolonged strike at its biggest factory, and car sales in Japan slumped for the third straight month as the deepening European debt crisis threatened the outlook for global sales.
The euro zone's troubles add to the woes of Japanese automakers, which are in for a sharp, long drop in domestic vehicle sales after the government's subsidies on some fuel-efficient vehicles ended in September.
In India, top car maker Maruti Suzuki reported a 28 percent rise in November sales, but exports fell 12 percent with most of those cars bound for Europe.
Excluding 660cc minivehicles, sales in Japan sank 30.7 percent to 203,246 units last month, marking the biggest fall on record for November, despite an extra selling day compared with the year before. Top-ranked Toyota Motor's sales fell 35 percent while Honda Motor's dropped 38 percent.
"There's no sense that sales have hit a bottom," said Michiro Saito, general manager at the Japan Automobile Dealers Association.
Including minivehicles, which get preferential tax treatment and are compiled separately, vehicle sales in Japan dropped 26 percent in November.
STRIKE HITS HYUNDAI
Hyundai Motor , South Korea's biggest automaker, fared better but also reported a 13 percent fall in its domestic market partly due to difficult comparisons from a year ago.
Its global sales rose 1.4 percent to 314,569 units, however, as it further outpaced rivals in Europe and other major markets.
Growing concerns over the European debt crisis may hit overseas sales in the next few months but analysts said Korean automakers were set to outperform the market thanks to new models, competitive compact cars and a weak local currency.
"Hyundai and Kia plan to launch a series of new cars next year (in Europe) and that will help them outperform the market," said Lee Sang-hyun, an analyst at NH Investment & Securities.
One worry is the strike -- now in its third week -- at Hyundai's biggest local production base, in Ulsan. Subcontracted workers have occupied the factory since Nov. 15 demanding the automaker give them permanent positions, hitting output and sales of its popular subcompact cars such as the Verna and Accent.
Hyundai warned on Wednesday it was seriously considering shutting down the affected plant in Ulsan, refusing to negotiate in what it calls an illegal strike.
It said the industrial action had caused a production loss of about 220 billion won ($190 million) so far.
Hyundai shares, however, jumped nearly 4 percent as the company's almost flat growth in November sales was better than most had feared.
"The strike will not have a major impact on its revenue because the affected plant produces (cheaper) subcompact models, and the South Korean currency remains favourable," Suh Sung-moon, an analyst at Korea Investment & Securities, said.
Hyundai affiliate Kia Motors fared far better, with a 33 percent jump in November sales to a record 222,116 units helped by strong sales of new models such as K5 sedan and Sportage R SUV.
Overall sales at India's Maruti Suzuki, 54.2 percent owned by Japan's Suzuki Motor Corp rose strongly, but the firm is also trying to boost exports to non-European nations.
"The euro zone crisis could affect sales of Maruti Suzuki, which has some exposure to that market, and it is now trying to sell to non-European countries," said Umesh Karne, a research analyst at Brics Securities in Mumbai.
The car maker is seeing rising competition from global automakers such as Nissan and Toyota in the fast-growing Indian market.
On Wednesday, Toyota began taking orders for the Etios compact sedan, developed specifically for the Indian market. A hatchback version will be launched next April, and Toyota confirmed it was targeting sales of 70,000 units for the Etios line in 2011. ($1=1155.7 Won) (Additional reporting by Bharghavi Nagaraju in Bangalore and Tanmaya Nanda in Mumbai; Editing by Muralikumar Anantharaman)