South Korean carmaker Kia Motors India is set to commence export of its cars from Anantpur plant in Andhra Pradesh through the Chennai Port Trust (ChPT) by September 20. , said a top official.
“In the first year, we are planning to export 30% of the total production. Initially, these cars (right-hand drives) will be exported to west Asia, south east Asia and mid-South America,” said Jong Soo Kim, chief operating officer, Kia Motors India.
According to Mr. Kim, Kia Motors would initially start exporting 500 units and the number would increase gradually. Cars will be moved from Anantpur plant to ChPT via road.
“We started producing cars last month. So far, we have shipped 6,000 vehicles. This year, we will be producing 40,000 to 60,000 cars, of which 30% will be exported. In the last two months, Kia Motors received 32,000 bookings,” he said.
Kia Motors, Glovis India and ChPT entered into a tripartite agreement for export of cars till 2029. ChPT chairman Raveendran said the first shipment would set sail by September 20.
As per the agreement, ChPT would provide a exclusive storage space, safer berths for car-carrier vessels at concessional rates and round-the-clock shipping service.
Asserting that the cargo volumes of ChPT for the first five months was in the negative compared with 2018-19, he said it was discussing with other players for entering into long-term agreements to boost its volumes in segments such as vehicles, bulk, break bulk, liquid cargoes and containers.
Mr. Kim said the firm chose Chennai Port over the neighbouring ports due to its strengths, experience and trust.
Glovis India is the inbound and outbound supply chain management provider for Kia Motors. It would think of moving cars through rakes once the volume pickeds up, said its MD Jim Young Kim.