India’s largest passenger vehicle manufacturer has achieved a record-breaking 5.18 lakh vehicle dispatches through the Indian Railways in the financial year 2024-25.
The shift, part of a broader green initiative, marks a substantial move away from traditional road freight and underscores the growing role of low-emission railways in India’s automotive supply chain. The milestone reflects a steady and strategic transformation in the company’s distribution network, anchored in environmental consciousness and operational efficiency. Vehicles are now dispatched to over 20 rail hubs across the country, from where they reach more than 600 cities. Even strategic export gateways such as Mundra and Pipavav ports are served by rail, reinforcing the commitment to reduce road congestion and fossil fuel consumption.
At the heart of this transformation is the Gujarat manufacturing facility, which recently became home to India’s first in-plant railway siding dedicated to automobile freight. This infrastructure advancement is already proving pivotal. It not only streamlines operations but also ensures faster turnaround times and reduces carbon output substantially. What sets this feat apart is not just the scale but the sustainability impact. Since initiating rail dispatches in 2014-15, the automaker has cumulatively moved nearly 24 lakh vehicles via the Indian Railways. In doing so, it has helped avoid over 1.8 lakh tonnes of carbon dioxide equivalent (CO2e) emissions—comparable to removing tens of thousands of cars off the road for an entire year. Moreover, this transition has saved over 63 million litres of fuel, a tangible gain in India’s quest for energy security and climate resilience.
The shift aligns well with India’s broader decarbonisation goals. Indian Railways, the second-largest cargo carrier globally, has increased its freight capacity from 1,055 million tonnes in 2013-14 to 1,617 million tonnes in 2024-25. This modal shift from road to rail has already led to a staggering reduction of over 143 million tonnes of CO2 emissions nationwide, which experts equate to planting over a billion trees. The automaker was the first in the country to acquire the Automobile-Freight-Train-Operator (AFTO) licence in 2013, positioning itself early in adopting rail-based logistics. Over the years, its fleet has grown to over 40 specially designed flexi deck rakes, each capable of carrying up to 300 vehicles per trip—optimising every journey while reducing emissions per unit transported.
These developments are not merely industry milestones but signal a wider cultural and infrastructural shift in how Indian cities can evolve. With the urban population expanding rapidly, reducing congestion, lowering emissions, and ensuring equitable resource distribution through sustainable logistics is more than good business—it is essential urban policy. Looking forward, the company aims to raise its share of rail dispatches to 35 per cent by FY 2030-31. If achieved, this will significantly contribute to the creation of low-carbon urban ecosystems and promote the transition towards greener Indian cities. While the long-term targets are ambitious, the ongoing momentum, robust infrastructure, and policy alignment suggest that sustainable logistics in India’s auto industry is not only achievable but inevitable.
As the race towards a net-zero economy intensifies, examples like this offer practical blueprints for how heavy industries can participate meaningfully. The transformation of transport logistics from roads to rails may well be one of the most underrated but impactful moves in the country’s climate action narrative.
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