Hyundai Glovis is increasing its influence in the Chinese logistics market by securing a new transport contract with a leading Chinese battery company.
On July 27, Hyundai Glovis announced that it has signed a transport contract with a prominent battery manufacturer in China. Under the agreement, Hyundai Glovis will transport electric vehicle batteries produced by the Chinese company from the southern coastal region of China, known as Huanan, to factories of global automakers located in Hungary, Spain, and Italy.
This contract allows Hyundai Glovis to expand its logistics operations in China, covering a range of products from batteries to semi-assembled components (KD) and finished vehicles, thereby strengthening its global supply chain business targeting Chinese companies.
Previously, Hyundai Glovis had also secured transport contracts for semi-assembled automotive components (KD) and press factory equipment destined for Eastern European factories of major Chinese electric vehicle manufacturers.
Since the first half of this year, Hyundai Glovis has been transporting finished vehicle parts and press factory equipment from factories in the eastern region of China to Slovenia and Croatia via maritime transport, followed by land transport to the respective factories. The eastern region is a key hub for advanced manufacturing companies in China, including those in the electric vehicle and semiconductor sectors.
Hyundai Glovis is implementing an 'End-to-End' logistics service, taking full responsibility for the entire process from Chinese factories to Eastern European plants.
The company is also expanding its finished vehicle logistics business. After receiving finished vehicles produced in China, Hyundai Glovis conducts quality inspections, disassembles and repackages them, and loads them into containers for transport to Central Asia, including Kazakhstan and Uzbekistan, utilizing the China-Europe Railway Express (TCR).
As a result, the volume of finished vehicles transported from China using Pure Car and Truck Carrier (PCTC) has been on the rise. The volume of finished vehicles transported from China via PCTC increased by 93%, from approximately 260,000 units in 2023 to about 510,000 units last year.
A Hyundai Glovis official stated, "Due to contractual regulations with our clients, we cannot disclose specific details regarding transport volumes or freight rates, but we are actively pursuing contracts with Chinese companies to secure more business."
Meanwhile, Hyundai Glovis reported a second-quarter revenue of 8.7054 trillion won, a 15.8% increase compared to the same period last year. However, operating profit fell by 8.1% to 495 billion won due to rising fuel costs stemming from geopolitical risks in the Middle East.
* This article has been translated by AI.
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