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

Indian Express

19-06-2025

Amid the push for lowering carbon emissions in the automobile sector, the share of passenger vehicles dispatched by the Indian Railways has increased to more than 20 per cent of the total car production in the country in 2024-25, a significant increase from 1.7 per cent share in 2014-15. This has opened up a new arena for the railways to increase its revenue, alongside meeting India's net zero emission target by 2070.
Union Minister for Railways Ashwini Vaishnaw on Tuesday inaugurated the country's largest automobile Gati Shakti Multi-Modal Cargo Terminal (MMCT) or railway siding at the Maruti Suzuki India Ltd facility in Manesar, Haryana. The plant can dispatch a maximum of 4,50,000 vehicles annually at full capacity.
Total car loading in the Indian Railways is expected to increase to nearly 15 lakh annually. A total of 10.41 lakh cars were transported by the Indian Railways in 2024-25.
How has the 'Rail Coefficient' increased?
A senior official of the Ministry of Railways said the Automobile Freight Train Operator (AFTO) scheme has been liberalised to encourage car manufacturers to transport passenger vehicles using the Indian Railways.
'The Registration fee for AFT Operators has been done away (with). Earlier, this fee was Rs 5 crore, now it is zero. Along with this, the minimum number of rakes (required) to be procured for transportation has been relaxed from three rakes to one rake. Auto ancillaries and spares have been permitted for carriage in both onward and return directions,' said the official.
Regular meetings are being held with all the stakeholders in the automobile industry, including the Society for Indian Automobiles Manufacturers (SIAM), the official added.
'On the basis of the issues raised by the stakeholders, the AFTO policy has been liberalised. The 'applicant net-worth' criteria for registration as AFTO, has been removed. Along with this, the requirement for procurement of maintenance of spare wagons has been reduced from 4 per cent per rake to 4 per cent of the total cumulative holding. All Container Terminals have been permitted to deal with automobile traffic,' said the official quoted above.
The Ministry of Railways has also added many automobile loading terminals in recent years namely Chitpur (Eastern Railway), Penukonda (South Western Railway), Nasrala (Northern Railway), Nautanwa and Bakshi ka Talab (North Eastern 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) etc.
What type of wagons are being used by the railways to transport cars?
Railway officials said that the induction of modern rakes to accommodate large four wheelers have helped in increasing car transportation.
'There was a time when Parcel Van or VP loading was the only option for the transportation of automobiles. There was no separate rake for this and it was attached to passenger or mail/express trains. Then came the Bogie Open Military (BOM) wagons. But it had limitations for dispatching cars and these wagons were mostly used in transporting military vehicles and equipment. In 1995-96, NMG (New Modified Goods) coaches were introduced in the Indian Railways. This really made a major difference in the transportation of automobiles by railways. More NMG rakes are being added to the Indian Railways. One rake of 25 NMG coaches (can) carry 100 to 125 cars, 125 to 175 tractors or 1,500 to 1,675 bikes.' said the official.
The railway official added that three more types of wagons, namely, bogie covered auto car bi-level (BCACBM)wagon, auto car taller (ACT1 and ACT2) wagons have been added to transport larger passenger vehicles such as SUVs. 'These are specialised double-decker railway wagons designed for transporting automobiles and automotive parts. A rake of 27 BCACBM wagons can dispatch 318 cars or 135 SUVs. Similarly, a rake of 33 ACT1 wagons can carry 330 cars or 264 SUVs and a rake of 27 ACT2 wagons can transport 324 cars or 270 SUVs,' said the official.
Which companies are India's top car transporters by railways
According to data available with the Ministry of Railways, Maruti Suzuki's share is highest when it comes to total railway car loading. In fact, almost 50 per cent of the total car transportation by railways is done by Maruti Suzuki. The company, which is India's largest car manufacturer, dispatches key models such as the Brezza, Ertiga, Wagon R, Dzire, Baleno, Swift, etc., by railways.
Hyundai is in the second position in terms of car transportation by railways, followed by Tata Motors and Mahindra Group in the third and fourth position, respectively.
Almost 80 per cent of the cars transported via railways are meant for domestic sales, according to officials. There are a total of 133 railway siding in the country where loading and unloading of cars take place. Maruti transports its cars to a total of 17 hubs, which further cater to a total of 380 cities.
Total car despatches by the Indian Railways
According to Railway Ministry data, a total of 10.41 lakh cars were dispatched by the Indian Railways in different parts of the country in 2024-25 (FY25). Similarly, the total car 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 3.09 lakh cars in FY20. The total car loading has increased significantly from just 54,219 cars in 2014-15.
Dheeraj Mishra is a Principal correspondent with The Indian Express, Business Bureau. He covers India's two key ministries- Ministry of Railways and Ministry of Road Transport & Highways. He frequently uses the Right to Information (RTI) Act for his stories, which have resulted in many impactful reports. ... Read More