Hyundai Motor India transports 26% of domestic sales by rail in 2024

Hyundai Motor India transported 26% of its domestic wholesale volume or 1,56,724 units through rail freight in 2024. This led to a reduction of 18,352 tons of CO2 emissions, the company said. It utilized Indian Railways’ extensive network to optimize its logistics, including 100% rail dispatches to the North-East region.

Over the past four years, from 2021 to 2024, Hyundai has cumulatively transported 5,37,499 units via rail, preventing 63,452 tons of CO2 emissions. By leveraging rail freight instead of road freight, HMIL has enhanced its sustainability efforts and reduced its environmental footprint.

Tarun Garg, whole-time director and chief operating officer of Hyundai Motor India, emphasized the company’s commitment to sustainability in operations, including logistics. He stated that the use of Indian Railways’ infrastructure for transporting vehicles from the manufacturing plant in Sriperumbudur, Chennai, to various locations across India has been instrumental in reducing emissions.

As the Indian government continues to improve rail infrastructure with dedicated freight corridors and energy-efficient rolling stock, HMIL plans to further enhance its reliance on rail freight for logistics. This approach aligns with the company’s long-term goals of minimizing environmental impact while optimizing its supply chain.

In recent years, many companies, including Hyundai, have increasingly relied on rail freight for logistics to reduce costs and environmental impact. Rail freight is significantly more fuel-efficient than road transportation, leading to reduced greenhouse gas emissions. Indian Railways has been improving its freight network with initiatives such as the Dedicated Freight Corridors (DFCs), which aim to enhance cargo transport efficiency and capacity.

The use of rail freight over road freight plays a key role in reducing carbon emissions, aligning with global efforts to combat climate change. For every ton of freight transported over 1 kilometer, rail generates about one-fifth of the emissions produced by road transport.

The Indian government has been prioritizing the modernization and expansion of the rail network. Initiatives include developing energy-efficient rolling stock, electrifying railway lines, and upgrading freight-handling facilities. This has made rail freight a more viable and competitive option for industries.

Established in 1996, HMIL is one of the largest car manufacturers in India and a major player in the country's automotive market. The company's production facility in Sriperumbudur, near Chennai, is one of the most advanced plants in the country, capable of manufacturing over 7.5 lakh vehicles annually. It caters to both domestic and export markets, with a wide portfolio of vehicles, including hatchbacks, sedans, and SUVs.