Maruti Suzuki Targets 1.4 Million Rail Dispatches by FY31, Expands Logistics Infrastructure

Maruti Suzuki India, the country’s largest carmaker, said it aims to dispatch 35% of its vehicles via Indian Railways by the financial year ending March 2031, as part of efforts to reduce transport emissions, fuel consumption, and manage growing production volumes.

The 35% target translates to 1.4 million units will be shipped by rail FY-31.The company currently dispatches 24.3% of its vehicles by rail, up from 5% in FY15. In FY25, it moved 518,000 vehicles through the rail network, according to official data released at the inauguration of its new in-plant railway siding at Manesar, Haryana.

The company has increased its capacity by eight times in the past 10 years. The rail strategy is being implemented as Maruti scales up its annual production capacity to 4 million units by the end of the decade, creating a need for higher-efficiency, low-emission logistics systems.

“We have systematically increased vehicle dispatches through railways... and aim to raise this share to 35% by FY 2030-31,” Hisashi Takeuchi, Managing Director and CEO of Maruti Suzuki, said at the event.

Takeuchi added: “Through this in-plant railway siding project, we aim to further reduce our carbon footprint in logistics, bring down fossil fuel consumption, and reduce congestion on the roads.”

The Manesar siding is Maruti’s second GatiShakti multi-modal cargo terminal after its Gujarat plant terminal, which was inaugurated in March 2024. The new Manesar facility spans 46 acres and can handle up to 450,000 vehicles per year at full capacity. It includes 8.2 km of electrified track linked directly to the plant.

The government’s PM GatiShakti National Master Plan aims to expand multimodal logistics capacity, reduce truck reliance, and shift freight to rail to cut emissions.

The Manesar terminal was developed by Haryana Orbital Rail Corporation Ltd (HORCL), a joint venture of HRIDC (55.4%), HSIIDC (19%), Maruti Suzuki (13%), Allcargo Logistics (7.6%), and GMDA (5%). The project cost is estimated at ₹11,709 crore ($1.4 billion).

Maruti said the terminal will help avoid 175,000 tonnes of carbon dioxide equivalent emissions and save 60 million litres of diesel annually. It is expected to eliminate around 65,000 truck trips every year.

The automaker, which accounts for nearly half of India’s passenger vehicle sales, is under pressure to make its supply chain more sustainable as emissions norms tighten and infrastructure expands under government-backed programmes.

Since 2014-15, Maruti has dispatched over 2.5 million vehicles via rail. The network now covers 600 cities through 21 hubs. The company operates over 40 custom rail rakes, each with the capacity for about 300 vehicles.

Models to be dispatched from Manesar include the Celerio, WagonR, S-Presso, Dzire, Brezza, Ertiga, and XL6. Export vehicles will move through Pipavav and Mundra ports using the same rail corridor.

“We remain committed to contributing to India’s growth, in harmony with the environment,” Takeuchi said.