Indian Railways has quietly achieved a major milestone in sustainable freight. Its share in passenger vehicle (PV) dispatches rose to over 20% of all cars manufactured in India during 2024–25, up from just 1.7% in 2014–15.
This marks a significant shift toward cleaner logistics in the automobile sector, contributing to India’s long-term climate goals.
From 1.7% to 20% in a Decade: Indian Railways
In 2014–15, rail transport was barely used for car movement. But the last decade has seen a strong shift, driven by efficiency, safety, and environmental benefits.
According to the Ministry of Railways, the total number of cars loaded on trains is expected to rise to nearly 15 lakh annually. This is a direct outcome of focused policies, new infrastructure, and industry partnerships.
Maruti Manesar Terminal Becomes Key Hub
On Tuesday, Union Railway Minister Ashwini Vaishnaw inaugurated India’s largest automobile railway siding — the Gati Shakti Multi-Modal Cargo Terminal (MMCT) — at Maruti Suzuki’s plant in Manesar, Haryana.
The facility can dispatch up to 4.5 lakh cars every year by rail, making it one of the most advanced hubs for green logistics.
Speaking at the event, Vaishnaw said, “Railways is emerging as a critical partner in India’s green growth. This terminal will ease congestion, reduce road traffic, and lower emissions.”
Helping Achieve India’s Net Zero Target
Transporting cars by rail instead of trucks significantly reduces carbon emissions. According to experts, trains emit 80% less carbon per tonne-kilometre compared to road transport.
This aligns with India’s goal of achieving net-zero emissions by 2070. The railway ministry’s efforts also support the government’s broader Gati Shakti initiative, aimed at integrated and efficient logistics.
Benefits for Carmakers
Leading automobile manufacturers — including Maruti Suzuki, Tata Motors, and Hyundai — have been shifting to rail transport for domestic dispatches.
Maruti Suzuki has been a frontrunner in this move. The company now dispatches over 3 lakh vehicles annually by rail and plans to increase that to 4.5 lakh with the new terminal.
Shashank Srivastava, Executive Director at Maruti Suzuki, said, “Rail transport allows bulk movement, timely deliveries, and safer transit. It’s also good for the environment.”
Policy and Infrastructure Push
Several policy changes have helped boost rail logistics for the auto sector. Indian Railways has introduced dedicated automobile freight trains, such as the New Modified Goods (NMG) rake and the Auto Express, to cater to carmakers’ needs.
The Railway Board has also relaxed procedural norms and encouraged private investments in terminal infrastructure.
Challenges Ahead: Indian Railways
Despite the growth, challenges remain. Rail freight still faces competition from road transport due to last-mile delivery flexibility and quicker dispatch turnaround.
Experts say further improvements in loading facilities, rake availability, and end-to-end tracking systems will be critical to sustaining momentum.
What’s Next? On Indian Railways
The railway ministry aims to double the share of car movement by rail in the next five years. More MMCTs are planned across Gujarat, Maharashtra, and Tamil Nadu — all major auto manufacturing states.
The goal is to make rail the preferred choice for long-haul logistics across sectors, not just automobiles.