Indian Railways is becoming a major choice for vehicle transportation across India due to its cost-effectiveness, efficiency, and eco-friendly approach. To further boost this sector, Railways is introducing specialized wagons with larger capacities and double decks for SUVs, said Hitendra Malhotra, member of the Railway Board for Operations & Business Development.
Speaking at the 11th Automotive Logistics Conclave organized by SIAM, Malhotra noted that these new wagons are designed to meet the growing needs of the automobile industry. He highlighted that Original Equipment Manufacturers (OEMs) are increasingly using railways as part of a multi-modal logistics strategy. While trucks handle first and last-mile delivery, railways manage long-distance transportation, offering better safety, cost savings, and reduced emissions.
The government’s PM GatiShakti National Master Plan (PMGS-NMP) supports this shift by expanding logistics capacity and moving freight from roads to rails. Indian Railways’ freight share has risen sharply, reaching 24% in 2024 from just 1.5% in 2016. Last year, the railways transported about 1,617 million tonnes of freight, with plans to raise this to 3,000 million tonnes.
Automakers are also increasing their reliance on railways. Maruti Suzuki transported 5.18 lakh vehicles through rail in FY25 and aims to dispatch 35% of its cars (1.4 million units) by rail by 2030. Hyundai Motor India also moved 1.56 lakh vehicles (26% of its domestic volume) by rail in 2024.
India has two dedicated freight corridors. The 1,856 km Eastern Corridor is fully operational, while the 1,506 km Western Corridor will be commissioned by December. Railways has introduced wagons like Bogie Covered Auto Car Bi-level (BCACB) and Auto Car Taller (ACT) wagons to carry more cars and larger vehicles, including SUVs.
Under the Automobile Freight Train Operator (AFTO) Scheme, 19 registered operators can procure wagons and transport vehicles across India. This includes cars, two-wheelers, tractors, and commercial vehicles.
With these efforts, Indian Railways is set to become a key driver of the automotive supply chain in the coming years.
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