The logistics service sector has been badly impacted for the last three weeks due to the Centre’s demonetisation move.
Besides, the non-availability of Rs.100 notes has made it difficult for logistic service providers to aggregate large number of vehicles as truck drivers need money to meet fuel, toll and other expenses. Usually, large number of trucks are hired to move goods from Tamil Nadu to other parts of the country.
Having gained rich experience of moving cars from one port to another, Hyundai Motor India Ltd., (HMIL) has started tilting towards the coastal route. Out of the total volume, 96 per cent of cars are sent through road and rest by rail.
On Monday, HMIL will be moving 2,500 cars through Roll-on Roll-off vessel to Kandla from Kamarajar Port at Ennore. From there, trucks would be deployed to dispatch cars to Mumbai, Gujarat, National Capital Region and Rajasthan. Last month, HMIL shipped 1,450 cars through coastal route.
“Due to the Centre’s demonetisation move, sufficient number of specialised trucks are not available to lift cars. This will badly affect the delivery schedule and also our production volume in the coming days. As of now, we have not cut our production volume,” said V. Anand, HMIL Senior General Manager, Outbound Logistics.
Mr. Anand said a delay in delivery schedule would place the dealers in a tight spot, as they would have borrowed money to book the cars. They have to pay interest from day one. HMIL was trying to compensate them. Besides, the dealers had to handle customers.
“Initially, our service provider faced some last mile issue. Now that has been sorted out. We are now depending on coastal movement,” he said.
For 2016, HMIL planned to produce five lakh cars for domestic markets and 1.6 lakh cars for export.