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Home»Business»How Indian Railways increased its share of car dispatches to 20% of all PVs manufactured in India | Business News
Business

How Indian Railways increased its share of car dispatches to 20% of all PVs manufactured in India | Business News

June 20, 2025No Comments5 Mins Read
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Amid the push for decreasing carbon emissions within the vehicle sector, the share of passenger autos dispatched by the Indian Railways has elevated to greater than 20 per cent of the overall automotive manufacturing within the nation in 2024-25, a major improve from 1.7 per cent share in 2014-15. This has opened up a brand new area for the railways to extend its income, alongside assembly India’s internet zero emission goal by 2070.

Union Minister for Railways Ashwini Vaishnaw on Tuesday inaugurated the nation’s largest vehicle Gati Shakti Multi-Modal Cargo Terminal (MMCT) or railway siding on the Maruti Suzuki India Ltd facility in Manesar, Haryana. The plant can dispatch a most of 4,50,000 autos yearly at full capability.

Whole automotive loading within the Indian Railways is anticipated to extend to almost 15 lakh yearly. A complete of 10.41 lakh automobiles had been transported by the Indian Railways in 2024-25.

How has the ‘Rail Coefficient’ elevated?

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A senior official of the Ministry of Railways mentioned the Car Freight Prepare Operator (AFTO) scheme has been liberalised to encourage automotive producers to move passenger autos utilizing the Indian Railways.

“The Registration price for AFT Operators has been carried out away (with). Earlier, this price was Rs 5 crore, now it’s zero. Together with this, the minimal variety of rakes (required) to be procured for transportation has been relaxed from three rakes to 1 rake. Auto ancillaries and spares have been permitted for carriage in each onward and return instructions,” mentioned the official.

Common conferences are being held with all of the stakeholders within the vehicle business, together with the Society for Indian Cars Producers (SIAM), the official added.

“On the premise of the problems raised by the stakeholders, the AFTO coverage has been liberalised. The ‘applicant net-worth’ standards for registration as AFTO, has been eliminated. Together with this, the requirement for procurement of upkeep of spare wagons has been decreased from 4 per cent per rake to 4 per cent of the overall cumulative holding. All Container Terminals have been permitted to cope with vehicle visitors,” mentioned the official quoted above.

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indian railways car loading Virtually 80 per cent of the automobiles transported through railways are meant for home gross sales, in response to officers.

The Ministry of Railways has additionally added many vehicle loading terminals in recent times particularly Chitpur (Jap Railway), Penukonda (South Western Railway), Nasrala (Northern Railway), Nautanwa and Bakshi ka Talab (North Jap Railway), Mesra (East Central Railway), Hirakud (East Coast Railway), Champaner and Chharodi (Western Railway), Baihata, Salchapra, Furkating, New Tinsukia, Jirania, Agthori (Northeast Frontier Railway), Loni, Khadki, AJNI, Vilad (Central Railway) and many others.

What kind of wagons are being utilized by the railways to move automobiles?

Railway officers mentioned that the induction of recent rakes to accommodate giant 4 wheelers have helped in rising automotive transportation.

“There was a time when Parcel Van or VP loading was the one choice for the transportation of cars. There was no separate rake for this and it was connected to passenger or mail/categorical trains. Then got here the Bogie Open Army (BOM) wagons. However it had limitations for dispatching automobiles and these wagons had been largely utilized in transporting navy autos and gear. In 1995-96, NMG (New Modified Items) coaches had been launched within the Indian Railways. This actually made a significant distinction within the transportation of cars by railways. Extra NMG rakes are being added to the Indian Railways. One rake of 25 NMG coaches (can) carry 100 to 125 automobiles, 125 to 175 tractors or 1,500 to 1,675 bikes.” mentioned the official.

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The railway official added that three extra varieties of wagons, particularly, bogie coated auto automotive bi-level (BCACBM)wagon, auto automotive taller (ACT1 and ACT2) wagons have been added to move bigger passenger autos akin to SUVs. “These are specialised double-decker railway wagons designed for transporting cars and automotive elements. A rake of 27 BCACBM wagons can dispatch 318 automobiles or 135 SUVs. Equally, a rake of 33 ACT1 wagons can carry 330 automobiles or 264 SUVs and a rake of 27 ACT2 wagons can transport 324 automobiles or 270 SUVs,” mentioned the official.

Which corporations are India’s high automotive transporters by railways

Based on knowledge accessible with the Ministry of Railways, Maruti Suzuki’s share is highest relating to whole railway automotive loading. Actually, virtually 50 per cent of the overall automotive transportation by railways is completed by Maruti Suzuki. The corporate, which is India’s largest automotive producer, dispatches key fashions such because the Brezza, Ertiga, Wagon R, Dzire, Baleno, Swift, and many others., by railways.

Hyundai is within the second place by way of automotive transportation by railways, adopted by Tata Motors and Mahindra Group within the third and fourth place, respectively.

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Virtually 80 per cent of the automobiles transported through railways are meant for home gross sales, in response to officers. There are a complete of 133 railway siding within the nation the place loading and unloading of automobiles happen. Maruti transports its automobiles to a complete of 17 hubs, which additional cater to a complete of 380 cities.

Whole automotive despatches by the Indian Railways

Based on Railway Ministry knowledge, a complete of 10.41 lakh automobiles had been dispatched by the Indian Railways in numerous elements of the nation in 2024-25 (FY25). Equally, the overall automotive loading in railways stood at 9.69 lakh in FY24, 7.70 lakh in FY23, 4.91 lakh in FY22, 3.98 lakh in FY21 and three.09 lakh automobiles in FY20. The overall automotive loading has elevated considerably from simply 54,219 automobiles in 2014-15.



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