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Indian Express
2 days ago
- Automotive
- Indian Express
How Indian Railways increased its share of car dispatches to 20% of all PVs manufactured in India
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
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Business Standard
4 days ago
- Automotive
- Business Standard
Indian Railways now transports 20% of cars produced across the country
Amid India's push to decarbonise automobile supply chains, the share of four-wheelers transported by Indian Railways has risen to 20 per cent of national production, according to senior government officials. 'In 2024-25, 1 million units of cars were transported via railways. This is 20.6 per cent of India's total car production of over 5 million,' said an official. In 2014, only 1 per cent of India's automobiles were transported through railways. The ministry of railways has been working on its Automobile Freight Train Operator (AFTO) scheme, making it more conducive for the sector, which had long been reliant on carbon-intensive
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Business Standard
4 days ago
- Automotive
- Business Standard
Railways to build 100 MEMUs and 50 Namo Bharat trains for short trips
To ease passenger woes in short-distance railway travel, the government will manufacture new 100 expanded mainline electric multiple units (MEMU) and 50 Namo Bharat trains, Union Minister for Railways Ashwini Vaishnaw said here on Tuesday. 'Yesterday, two major decisions were made. To ease passenger travel, 100 MEMUs will be manufactured with 16 and 20 coaches. Earlier, MEMUs were manufactured with 8 or 12 coaches. A new factory is being set up in Kazipet, Telangana where these trains will be made,' the minister said at the inauguration of India's largest automobile loading facility at Maruti Suzuki India's Manesar plant. A MEMU is a type of electric multiple unit train designed for operation on mainline tracks, connecting city centres with suburban areas for short to medium-distance routes with frequent stops. The minister also added that the ministry of railways will build 50 new Namo Bharat trains. These air-conditioned trains were developed for short-distance travel between cities. The first of these trains was launched last year in Gujarat. The minister also said that the GatiShakti Cargo Terminal, dedicated for Maruti Suzuki's car transportation, will enable greening of logistics as these cars were earlier ferried via road transport. 'In line with the vision of the Prime Minister, railways undertook major reforms in 2021 to strengthen multi-modal logistics, resulting in the construction of 108 multi-modal cargo terminals in a short span of time. The terminal in Haryana, where the announcement was made, is spread over 45 acres and has a cargo handling capacity of up to 4.5 lakh cars,' he said. The minister also said that a pilot project in the Bikaner division of North Western Railway to publish final charts with passenger allocation 24 hours before the train's departure has borne great results. He added that the facility will allow passengers to plan their journeys better. Currently, charts are published some 2-3 hours before the train's departure time, leaving passengers anxious about their travel plans. Maruti Suzuki transported 518,000 units in 2024-25 through the Automobile Freight Train Operator scheme. The railways, in FY25, crossed the mark of one million cars transported through its network. Now, 20 per cent of all cars manufactured in India are transported via rail. At the same event, Haryana Chief Minister Nayab Singh Saini said that the government's railway work in the state and the Manesar cargo terminal will ease connectivity to ports on the western coast, enabling better access to export networks.