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Hyundai takes the sea route for Indian domestic market

Snapshot: Hyundai has taken the sea route to transport their cars from Southern state of Tamil Nadu to Gujarat. More manufacturers might emulate.

Hyundai Motor India Limited (HMIL), like many other manufactures uses the sea route to export cars. It is the first time the company transported cars to another state, Gujarat using the seat route. According to the company, this is an attempt to reduce its carbon footprint. In the first shipment, last Saturday, the company sent 800 cars on the M V IDM Symex via Chennai Port to Pipavav Port in Gujarat and it would take six day for the ship to reach at the destination.

Chennai port official are also in talks with other manufacturers like Ford and Nissan to make use of the port to transport their vehicles to other states.   

According to the company, transporting vehicles via the sea route is 25-30 percent more economical compared to the road. Chennai Port Chairman M.A. Bhaskarachar, said “To encourage the OEMs to use our services, we have announced a flat wharfage rate of Rs 500 per small car and Rs 2,000 for big cars. Also the wharfage for RoRo vessels using coastal route has been reduced by 40 per cent of normal tariff. This decision was taken within a day.”

Hyundai has a production plant in Sriperumbudur, Tamil Nadu and would be sending most popular cars Eon, i10, Grand i10, Elite i20, i20 Active, and Creta to state. The Shipping Ministry has also advised the Finance Ministry to offer the company an incentive of Rs 3,000 per vehicle to all automakers that use the sea route for transportation. 

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