Maruti Suzuki sees vehicle dispatches via railways to rise to 35% by FY31

Car market leader Maruti Suzuki India Ltd expects vehicle dispatches through railways to increase to 35 per cent by 2030-31, its Managing Director and CEO Hisashi Takeuchi said on Tuesday.

The company, which inaugurated its second automobile in-plant railway siding at its Manesar facility, has increased vehicle dispatches through railways, from just around 5 per cent in FY 2014-15 to 24 per cent last year, he said while addressing the event here.

The automobile in-plant railway siding at Manesar plant is India's largest GatiShakti multi-modal cargo terminal.

"Maruti Suzuki pioneered the use of railways for vehicle dispatches over a decade ago by becoming the first company to obtain the automobile-freight-train-operator license in India, and since then, we have dispatched over twenty-five lakh passenger vehicles using railways," Takeuchi said.

In March 2024, the automaker became the first automobile company to establish an in-plant railway siding in its Gujarat manufacturing plant.

"We have systematically increased vehicle dispatches through railways, from just around 5 per cent in FY 2014-15 to 24 per cent last year," he said.

Takeuchi said the company will take it further with the new facility at Manesar.

"Once it becomes fully operational, we will be able to dispatch 4.5 lakh vehicles annually, increasing the share of railway dispatches to 35 per cent by FY 2030-31," he added.

This means a growth of almost 40 per cent from the current level, Takeuchi said, adding "we will be able to avoid an estimated 175,000 tonnes of carbon dioxide equivalent emission and save 60 million litres of fuel annually".

The Manesar railway siding, registered under the PM GatiShakti National Master Plan, has been developed as part of the 126 Km Haryana Orbital Rail Corridor (HORC) running from Sonipat to Palwal in Haryana.

The project has been executed by a joint venture firm Haryana Orbital Rail Corporation Ltd (HORCL).

Under the joint venture, MSIL has committed to invest Rs 325 crore in developing HORC.

Additionally, MSIL has invested about Rs 127 crore towards internal yard development, taking its overall investment to Rs 452 crore.

The railway siding at Manesar plant is spread over 46 acres inside the company's facility. It has a fully electrified corridor with four full-length tracks for rakes and one track for engine escape, totalling 8.2 kms of track length.

Models manufactured at MSIL's Gurugram and Manesar facilities will be dispatched to 17 hubs from this railway siding serving 380 cities across India, the company said.

Port locations of Mundra and Pipavav, used by the company for exports, will also be served, it added.

MSIL has dispatched 25 lakh vehicles cumulatively through railways since 2014-15.