Kia Motors, Glovis India and Chennai Port Trust have entered into a tripartite agreement for export of cars till 2029 through the port.
South Korean car-maker Kia Motors will commence exports of its recently-launched Seltos cars, manufactured at its Anantpur plant in Andhra Pradesh, via Chennai port in the next few days.
Kia Motors, a Hyundai sister concern, would initially export 500 units and increase the volume gradually. The cars would be transported from Anantpur plant to Chennai port by road.
Speaking to media persons here on Thursday, Kia Motors India chief operating officer Jong Soo Kim said that the company was planning to export 30% of the total production in the first year. The cars will be exported to West Asia, South East Asia and mid-South America, in the initial phase.
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 Chennai Port Trust have entered into a tripartite agreement for export of cars till 2029 through the port. Port chairman P Raveendran said that the first shipment would sail by September 20.
As per the agreement, Chennai port would provide an exclusive storage space, safer berth for car carrier vessels at concessional rates and round-the-clock shipping service.
A port official said cargo volume at the port for the first five months remained in the negative compared to 2018-19. The port was holding talks with other players for entering into a long term agreement to boost its volumes such as vehicles, bulk, break bulk, liquid cargoes and containers.
Glovis India is the inbound and outbound supply chain management for Kia Motors. The company may think of moving cars through rakes once the volume picks up, said its managing director Jim Young Kim.