Korean automaker KIA Motors would begin exports of mid-size sports utility vehicle 'Seltos' later this month, a top official said here on Thursday.
The company will look to ship at around 500 units to mid-South America to start with and later to Middle East and South Asian markets, KIA Motors Chief Operating Officer Jong Soo Kim said.
As part of shipping it's vehicles, Glovis India Anantpur Pvt Ltd Managing Director Jim Young Kim exchanged documents with Chennai Port Trust Traffic Manager M S Balani in the presence of top officials of KIA Motors and Chennai Port.
Glovis India Anantpur Pvt Ltd is the logistics service provider of KIA Motors.
Chennai Port Trust Chairman P Raveendran said the first shipment of KIA Motors was expected to begin by September 20.
He said the Port under the memorandum of understanding signed, would offer tailormade facilities and concessional benefits for the export of vehicles to KIA Motors.
The agreement signed would be valid till 2029 and KIA Motors would exclusively use Chennai Port for exports of vehicles, he said.
KIA Motors India COO Jong Soo Kim said the company would look at gradually increase the shipment from the Chennai Port Trust.
"It is around 500 units for September and we will gradually increase (the shipment)", he said in response to a question.
To a query, he said the company was looking at 30 per cent of the production from its Anantpur facility would constitute exports segment.
KIA Motors in June announced the global debut of SUV Seltos and had planned to launch four new models in the next two years.
The company which is the sister entity of Hyundai Motor has invested USD 2 billion in India including USD 1.1 billion at the plant which has a capacity of three lakh units annually.
Responding to a query on sales target for 2019, Kim said the company in August sold 6,000 units.
"We will look at selling around 32,000 cars in the domestic market in 2019".
Chennai Port Trust Chairman P Raveendran said Hyundai Motor India has been shipping its cars from the port since 2005 and they have renewed the agreement till 2028.
The port was offering reduced commercial charges based on the export volume committed by KIA Motors, he said.
To a question on handling of cars at the port, he said till August the Port shipped 79,530 cars as against 52,948 cars shipped last financial year.
"The export of KIA Motors from Chennai Port Trust is expected to boost this further," he added.
Noting that the port has taken up various measures to ease the congestion inside the port area, he said a Coastal berth measuring 260 metres in length has been constructed with sufficient back-up.
"Bunkering berth is under construction and should be ready by March 2020," he said.
Source: moneycontrol.com