Industry

Automakers in south tap exports

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Move helps offset domestic slowdown; Hyundai growth highest in sector at 13%

Some automobile majors in the south have resorted to increasing their exports to partially offset the impact caused by the ongoing economic slowdown. Shipping vehicles or chasses to neighbouring countries, other parts of Asia and Africa, have helped keep the tempo up for these automakers

From January to December 2019, two ports located in Chennai collectively handled 3.43 lakh units, an increase of 10.28% over the previous year. The vehicles included passenger cars, buses, trucks, car accessories.

Hyundai Motors was the biggest beneficiary, posting a 13.33% growth over the previous year, exporting 1.52 lakh units. These figures do not include vehicles sent overseas as completely knocked down units.

H2 better than first half

Renault-Nissan exported 84,000 units against 74,464 units. The volume in the first half of 2019 was muted but picked up in the second half due to new launches such as the Renault Triber, Kwid and Duster. Ford posted a marginal increase of 4% in its export volume at 90,000 units, while Toyota showed 9% growth. Honda, which has a manufacturing unit in the North, stopped exporting cars from Kamarajar Port and opted to do so from the West coast due to the logistics cost of sending vehicles from Noida.

New entrant Kia Motors shipped 11,000 units in three months from the Chennai Port. It is likely to increase its export volume and product variants too, said a company official. Commercial vehicle manufacturer Ashok Leyland, which was also impacted by the slowdown in the segment, exported about 170 units against 64 units in 2018. Daimler posted 19% growth to end the year with 5,295 units.

Kamarajar Port handled 1.9 lakh units against 1.76 lakh units in 2018. There was a ‘slight’ decline in the export figures due to stoppage of Nissan Micra, said an official at the Kamarajar Port.

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Printable version | Jan 24, 2020 8:25:42 PM | https://www.thehindu.com/business/Industry/automakers-in-south-tap-exports/article30545550.ece

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