Indian Railways Transports 20% of Cars in India: A Green Logistics Revolution

Car Transportation by Rail Latest News

• In a major step towards reducing carbon emissions, Indian Railways increased its share of passenger vehicle (PV) dispatches to over 20% of total car production in 2024–25, a sharp rise from just 1.7% in 2014–15.
• In 2024–25, Indian Railways transported 10.41 lakh cars, with total car loading expected to reach 15 lakh annually soon. This shift supports India’s net zero emissions target by 2070 and presents a new revenue stream for the Railways.
• Railway Minister Ashwini Vaishnaw inaugurated India’s largest automobile Gati Shakti Multi-Modal Cargo Terminal (MMCT) at the Maruti Suzuki plant in Manesar, Haryana, capable of dispatching up to 4.5 lakh vehicles annually.

How the ‘Rail Coefficient’ for Car Transport Increased

• Liberalisation of AFTO Policy
  • The Automobile Freight Train Operator (AFTO) scheme has been made more flexible to encourage car manufacturers to use Indian Railways for transporting passenger vehicles:
    • Registration fee of ₹5 crore removed
    • Minimum rake requirement reduced from 3 to 1
    • Auto ancillaries and spares now allowed in both directions
    • Net worth criteria for applicants eliminated
    • Spare wagon maintenance requirement eased from 4% per rake to 4% of total holdings
• Industry Engagement and Feedback
  • Regular consultations are held with key stakeholders like SIAM (Society for Indian Automobile Manufacturers) to continuously improve the policy based on industry needs.
• Infrastructure Expansion
  • To support increased volumes, Indian Railways has added multiple automobile loading terminals across the country. New terminals include:
    • Eastern Region: Chitpur
    • Southern Region: Penukonda
    • Northern Region: Nasrala
    • North Eastern Region: Nautanwa, Bakshi ka Talab
    • East Central Region: Mesra
    • East Coast Region: Hirakud
    • Western Region: Champaner, Chharodi
    • North East Frontier Region: Baihata, Salchapra, Furkating, New Tinsukia, Jirania, Agthori
    • Central Region: Loni, Khadki, AJNI, Vilad
• These reforms and infrastructure additions have significantly contributed to the rise in the ‘rail coefficient’—the share of cars transported by rail.

Wagons Used by Indian Railways to Transport Cars

• Evolution of Automobile Transport by Rail
  • Initially, Parcel Vans (VPs) were used, attached to passenger or mail/express trains.
  • Later, Bogie Open Military (BOM) wagons were introduced but were limited to military equipment.
• Introduction of NMG Coaches
  • In 1995–96, New Modified Goods (NMG) coaches revolutionized car transport.
  • A single rake of 25 NMG coaches can carry:
    • 100–125 cars
    • 125–175 tractors
    • 1,500–1,675 two-wheelers
  • Indian Railways is continuously expanding its fleet of NMG rakes.
• Modern Wagons for Larger Vehicles
  • To meet the growing demand for transporting larger passenger vehicles like SUVs, the Railways introduced three new types of double-decker auto wagons.
  • These modern rakes have significantly enhanced the capacity and efficiency of automobile transportation via rail.

India’s Top Car Transporters by Rail

• Maruti Suzuki Leads the Pack
  • Maruti Suzuki accounts for nearly 50% of all car transport via Indian Railways.
  • Maruti uses 17 railway hubs, which serve 380 cities across India.
• Other Major Players
  • Hyundai ranks second in car transport by rail.
  • Tata Motors holds third position.
  • Mahindra Group is in fourth place.
• Domestic Sales Dominate
  • Approximately 80% of cars transported by rail are meant for domestic markets.
• Expansive Rail Infrastructure
  • India currently has 133 railway sidings where cars are loaded and unloaded, supporting the growing shift to rail logistics in the automobile sector.

Growth in Car Dispatches by Indian Railways

• Steady Rise in Car Dispatches
  • Indian Railways has witnessed a sharp increase in car dispatches over the past decade:
    • 2024–25 (FY25): 10.41 lakh cars
    • 2023–24 (FY24): 9.69 lakh cars
    • 2022–23 (FY23): 7.70 lakh cars
    • 2021–22 (FY22): 4.91 lakh cars
    • 2020–21 (FY21): 3.98 lakh cars
    • 2019–20 (FY20): 3.09 lakh cars
• 20-Fold Growth Since 2014–15
  • From just 54,219 cars in 2014–15, car loading has grown nearly 20 times—a testament to Indian Railways’ enhanced role in green and efficient logistics.
• Contributing Factors
  • This growth is attributed to:
    • Policy reforms like liberalising the AFTO scheme
    • Introduction of modern auto-wagons
    • Expansion of dedicated automobile terminals and sidings across the country.

Source: IE