The Hindu Business Line : Maruti speeds up car delivery to South using rail, waterways

New Delhi, July 12 Maruti Suzuki is speeding up its alternative modes of transport for delivery of cars as it ramps up the volumes that are routed to southern States via the railways and waterways. Almost 800 cars a month are now being delivered this way.

The company began shipping its cars from the Mundra port to Kochi from where it is being dispatched to the southern cities and districts since August last year.

In the financial year ended 2007-08, about 4,500 Maruti cars hit the port of southern India. Maruti, for one, has taken to this unconventional route as it found that the congestion on the road was making it difficult to deliver stocks ‘just in time’.Other carmakers are also mulling the same option.

Currently, 97-98 per cent of the vehicles for delivery use road transportation, making it possible for manufacturers to stock their inventories at various locations. However, when using the railways or the coastal route, companies have to transport their vehicles directly to a single destination, from where it is again to be sent to various locations.

Though car companies say that as of now there is no cost advantage in using the alternative modes of transport, they see its cost cutting potential as volumes increase.

“We would be increasing delivery through the railways and the coastal route as it helps us move our cars swiftly and enables us to flush out additional truck capacity from our system which can be allocated elsewhere,” said a Maruti Suzuki official.

At present, Maruti Suzuki is the only company using alternative transport. However, Honda Siel Cars India is also in talks with logistic companies to explore a similar option, said Mr Jnaneswar Sen, the company’s Vice-President, Sales and Marketing.

The Society of Indian Automobile Manufacturers concedes that carmakers would be able to benefit from the cost after the automobile rake designed by the railways gets operational.

“The railways have designed the rake for a smooth movement of cars, but it is yet to notify the rates. We expect it to get commercially operational in three-four months,” said Mr Sugoto Sen, SIAM Director.

He said that after the railway facility becoming fully operational to move cars, many of the carmakers would be able to avail themselves of the option in a cost-effective way.

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