How Indian Railways Increased Its Share of Car Dispatches to 20% of All PVs Manufactured in India
Indian Railways has achieved a significant milestone by transporting one-fifth of all passenger vehicles (PVs) manufactured in the country, marking a six-fold jump in just 10 years. From a modest 3% share in 2013-14, Indian Railways’ involvement in car dispatches has grown to 20% in FY24 — a transformation driven by strategic reforms, infrastructure upgrades, and strong industry collaboration.
Key Factors Behind the Growth
1. Enhanced Infrastructure and Specialized Rakes
The introduction of Automobile Freight Train Operators (AFTO) scheme and development of BCACBM and NMGH rakes enabled safe, high-volume movement of vehicles. These specially designed wagons can carry up to 318 cars per rake, significantly reducing per-unit costs and time.
2. Faster and Safer Transit
Railways offer faster, damage-free, and theft-proof transportation compared to road transport. Car manufacturers now consider trains a more reliable and timely mode, especially for long-distance dispatches to the north-eastern, eastern, and southern states.
3. Environmentally Sustainable Logistics
Rail transport leads to a 75% reduction in CO₂ emissions compared to road logistics. This green logistics push aligns with the automobile industry’s sustainability goals, prompting OEMs to prefer trains over trucks.
4. Strategic Partnerships with Carmakers
Indian Railways has built close ties with major auto manufacturers like Maruti Suzuki, Hyundai, Tata Motors, Kia, Mahindra, and others. Companies have signed long-term freight contracts and invested in private terminals and sidings, streamlining the dispatch process.
5. Policy Reforms and Private Participation
Revised freight policies, reduced tariffs, and the Liberalized Wagon Investment Scheme have encouraged private players to invest in customized wagons and terminals. This public-private collaboration has catalyzed growth in rail car dispatches.
FY24 Snapshot: Record Numbers
5.41 lakh cars transported by Indian Railways
Over 3.2 lakh four-wheelers moved by Maruti Suzuki alone by rail
Around 4,000 rakes used for automobile logistics in FY24
Over 30 private freight terminals handling vehicle dispatches across India
Regional Impact
States like Gujarat, Tamil Nadu, and Maharashtra, which host major automotive manufacturing hubs, are leveraging multi-modal logistics parks and rail-linked terminals to dispatch vehicles more efficiently. This has not only reduced congestion on highways but also enhanced last-mile connectivity via road from rakes.
Future Outlook
Indian Railways is aiming to increase its share to 30% in the next five years by:
Introducing more high-speed auto rakes
Expanding dedicated freight corridors (DFC)
Strengthening logistics parks near auto hubs
Encouraging further OEM participation and customized freight solutions
FAQ: Indian Railways and Car Dispatches
Q1: Why are car manufacturers choosing Indian Railways over road transport?
A: Rail offers safer, faster, and more eco-friendly transportation. It’s also more cost-effective over long distances.
Q2: Which automakers are using Indian Railways most extensively?
A: Maruti Suzuki, Hyundai, Tata Motors, Kia, and Mahindra are among the top users.
Q3: What kind of trains are used to transport cars?
A: Specially designed rakes like BCACBM and NMGH, capable of carrying over 300 cars per trip.
Q4: How does rail transportation help reduce emissions?
A: Rail emits significantly less CO₂ per tonne-km than trucks, supporting green logistics goals.
Q5: What is the future target for Indian Railways in automobile logistics?
A: The goal is to increase the market share to 30% of all PV dispatches in the coming years.
Published on 19th june
Publisher : SMITA
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