Hyundai commences export operations via railways

Hyundai surpassed the three million vehicle export milestone earlier in 2020. The manunfacturer has recorded multiple export milestones in India over the years.

By:January 14, 2021 8:00 AM

South Korean car major Hyundai Motor India (HMIL) has commenced its first-ever eco-friendly export operations from India through the railway mode, with the dispatch of the first consignment of 125 cars to Nepal. The first export consignment was flagged-off by Ganesh Mani S, director-production, HMIL from the Walajabad railway hub near the Irungattukottai-based HMIL production facility outside Chennai. The train will reach the India-Nepal border at Nautanwa near the border town of Sonauli, from where the last-mile delivery will be through the roadways owing to the topography of Nepal. The overall on-road movement time is expected to reduce from 8 days to 5 days, bringing the cars faster and more eco-friendly manner to the customers.

“Hyundai is committed to eco-friendly initiatives. As a progressive OEM, all our production processes follow Green practices for the conservation of natural resources. The zero-wastage of water and using over 70% of renewable energy in the HMIL plant has set a benchmark in the industry. Our innovative practices like using coastal shipment for domestic logistics of cars have already been appreciated by the authorities, and we send out over 14% of our domestic car volumes by the rail route instead of the road,” said Mani.

As the country’s largest exporter of automobiles sending Hyundai cars to over 88 countries, Hyundai surpassed the 3 million vehicle export milestone earlier in 2020. Hyundai India has recorded multiple export milestones over the years.

It has crossed several export-related milestones in the journey, completing 5 lakh exports of cars in March 2008, 10 lakh exports in February 2010, 20 lakh cars in March 2014, and 30 lakh cars in January 2020. Hyundai has also established a slew of practices in domestic logistics, using railways (over 14% of the volumes) and waterways to send cars across India from the Irungattukkottai-based production facility.

In December 2020, Hyundai had clocked an impressive 58.84% growth in exports from India at 19,350 units as against 12,182 units in the same month last year. The company had in the calendar year 2020 had registered cumulative sales of 5,22,542 units with exports being at 98,900 units.

The domestic sales during December 2020 stood at 47,400 units as against 37, 953 units, registering a growth of 25%.

Walajabad is one of the goods sheds of Chennai railway division which consistently loads automobile consignment to various parts of the country since 2016-17. Two logistic companies namely, TCOI (Transport Corporation of India) and JKTI (Joshi Konoike Transport and Infrastructure) provide freight traffic business to railways (both outward and inward traffic).

A third new company, IVC logistics has collaborated with the Chennai division to do business by transporting automobiles to foreign countries. This was the first time; Chennai division has loaded automobile goods for export to Nepal via Nautanwa railway station in Uttar Pradesh. From Nautanwa, the loaded car consignment will be transhipped by road to Kathmandu and Mahendra Nagar in Lumbini District of Nepal. The consignment is transported by railways for a distance of 2208 km will earn a revenue of `18.27 lakh. Automobile loading of 2-3 rakes per month is expected for this current year, said a Southern Railway source.

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