Hyundai claims not a single contract labour lay offs due to slowdown
Despite the recession in the automobile sector, Hyundai said that it is the only company that works in three shifts.
“We have not removed a single contract employee till date,” said BC Dutta, Vice-President, Corporate Affairs, Hyundai Motor Company.
Car sales declined nearly 30 per cent between April and August.
Hyundai produces nearly 7.50 lakh cars a year — i.e 2,500 cars a day and in three shifts — at its Sriperumbdur plant near Chennai, he said at a session on Ease of Doing Business (EoDB) at the 3rd edition of CII Port Conclave 2019.
For over 20 years, Hyundai is the largest exporter of cars from India, shipping to 91 countries.
“We are the hub of small cars in India, and all small cars made by Hyundai Motors is Made in India. We can proudly say that this is the car Made in Tamil Nadu. That kind of strength is there in this plant at our Sriperumbudur plant, which is technically very advanced and very well ahead of other plants with Hyundai Motors,” he said.
On EoDB, Dutta said measures such as Direct Port Entry, Direct Port Delivery and speedy refund has helped. However, connectivity between the plant and the port is a major challenge. This is considering that the plant is working on Just-in-Time.
Hyundai has two types of exports — parts that goes in containers and cars in RoRo vessels. For over 20 years, Hyundai has been the largest exporter of cars from India, shipping to 91 countries
Chennai port has given ‘excellent’ facility and entry for cars for all time, thus helping Hyundai export substantially.
However, cars need to be moved from the plant to the port between 11 pm and 6 am with nearly 100 trucks moving during this time. It is a major challenge reaching the port itself using the Poonamallee High Road.
“One cannot even drive the car on the PH Road. Moving a truck, that too with a car inside and without any scratch to reach the port, is a major challenge. I request the port authorities to take it up with the National Highways to improve this road,” he added. The other challenge is moving cars by rail. Nearly 90 per cent of the cars manufactured goes by road to various dealers and hardly 10 per cent by rail or ship.
Hyundai was the first car company to tap the sea route for its exports. However, it failed to take off as it was too time consuming.
Dutta urged the government to provide rail connectivity to Sriperumbudur, Oragadam and Singaperumal Koil so that auto majors such as Hyundai, Ford, Daimler and Nissan can move their cars using railways to the port and various destinations.
Railway Minister Piyush Goyal in a meeting last month assured of his support to this rail connectivity project, he said.