Maruti Suzuki Shifts Gears: Embraces Rail Transport to Cut Emissions, Boost Green Dispatch

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The largest automaker and vehicle exporter in India, Maruti Suzuki India, is discreetly reshaping the landscape of automotive logistics. The firm has progressed beyond symbolic sustainability acts and into large-scale, integrated action with the recent opening of its in-plant railway siding at Manesar.

The siding is not simply another dispatch center; it reflects the development of Maruti's logistics strategy, which is deliberate, systematic, and in line with commercial needs and environmental accountability.

A complete rail facility in Manesar

The Manesar siding, which is now formally the largest in India for any automobile manufacturer, spans 46 acres within the production campus and has a completely electrified 8.2 km corridor. This facility, which was created in collaboration with the Haryana Orbital Rail Corporation Ltd (HORCL), a joint venture that includes Indian Railways, HRIDC, HSIIDC, GMDA, AllCargo Logistics, and Maruti Suzuki itself, is not simply an operational ease. It reflects how infrastructure and production are now coordinated as a single ecosystem.

The siding, which is capable of sending out up to 4.5 lakh cars year, represents a total investment of ₹452 crore, comprising ₹127 crore for internal yard development and ₹325 crore as equity in HORCL. Vehicles go straight from the assembly line to rakes, eliminating intermediate handling, staging, and related hazards.

This project highlights Maruti Suzuki India's dedication to "India's growth, in harmony with the environment" and represents a significant advancement toward the company's goal of cleaner and more efficient logistics, as stated by Hisashi Takeuchi, Managing Director and CEO, during the inauguration.

An uninterrupted transition from line to rake

Rahul Bharti, Executive Officer of Corporate Affairs at Maruti Suzuki India, stated that the Manesar automotive railway siding is a component of a revamped logistics spine. “This is about minimising movement, minimising handling, and maximising predictability. The vehicles are loaded directly onto the train after leaving the assembly line. Not only is it more efficient, but it's also more dependable."

Bharti emphasized that Maruti has been collaborating extensively with Indian Railways to ensure consistency in future rake design, slotting, and scheduling. The firm now runs more than 40 flexi-deck rakes and is working with wagon manufacturers to create new rakes that can fit taller SUVs. This knowledge demonstrates Maruti's progressive grasp of both logistics and automobile trends.

He also highlighted congestion at adjacent stations like Pataudi Road and stated that railway officials are still having talks about addressing throughput as capacity increases.

Maruti now has direct access to 17 hubs and 380 cities since Manesar, and exports through Mundra and Pipavap are being more frequently transported by rail. This network enhances end-to-end visibility while considerably alleviating strain on road transportation.

Ten years of steady progress on rails

Maruti Suzuki's rail-based logistics transition started in 2013, when it became the first automobile manufacturer in India to be granted an Automobile Freight Train Operator (AFTO) licence. Since then, the business has progressively improved its rail dispatch capabilities, growing from its first rake in 2014 to running more than 40 flexi-deck auto-wagon rakes now. More than 25 lakh cars have been transported by Maruti Rail as of June 2025, with a record 5.18 lakh units shifted in FY24–25 alone, representing over 24% of all dispatches.

Maruti has dispatched more than 25 lakh cars via rail, with a record 5.18 lakh units moved in FY24–25 alone

The long-term plan is clear: Maruti aims to increase this share to 35 per cent by FY2030–31. For a company of its scale, efficient, low-emission, and high-volume logistics is no longer a luxury—it's a necessity. As Rahul Bharti put it succinctly, “With the kind of volumes we’re talking about, how you move the vehicle becomes as important as how you build it."

Gujarat’s success and Kharkhoda’s blueprint

The Manesar siding is Maruti’s second in-plant railway terminal after Gujarat, which was commissioned in March 2024. That facility, developed with the Gujarat government’s G-RIDE initiative, has a capacity of 3 lakh vehicles per annum and has already handled over 2.3 lakh vehicles in FY25. These aren’t experiments. They are scalable, replicable solutions. And the next one is already on the drawing board: the Kharkhoda plant, which will also feature an in-plant siding directly linked to the HORC network.

According to Bharti, Kharkhoda’s railway integration is being designed upfront. He expressed that logistics planning is now a core part of factory planning. Rail isn’t something the company looks to add later rather it’s built into the layout from the start.

A measurable impact on emissions and efficiency

The environmental and operational benefits of this shift are substantial, and they are being measured—not just stated. According to internal estimates, the Manesar siding alone will help avoid 65,000 truck trips each year, translating to 60 million litres of diesel saved and nearly 1.75 lakh tonnes of CO₂ emissions avoided. That aligns with India’s net zero goals, the UN’s climate action framework (SDG 13), and Maruti’s own sustainability agenda.

At a more functional level, the shift to rail improves dispatch predictability, reduces vehicle handling damage, and smoothens delivery timelines—especially critical as production scales. With vehicle production projected to reach 4 million units annually by FY31, such infrastructure isn’t just desirable, but rather necessary.

A template for public-private collaboration

This quiet but deliberate rail logistics shift offers lessons beyond Maruti. It represents what public-private partnership can achieve when purpose overrides paperwork. HORCL’s structure—with Indian Railways, the Haryana government, and industry stakeholders sharing both risk and vision—could become a template for other sectors grappling with similar scale and sustainability challenges.

Maruti Suzuki’s railway siding at Manesar is not just an operational upgrade—it is a strategic template. It shows how India’s largest carmaker is preparing for a future where scale alone is not enough. In a world increasingly defined by ESG metrics, supply chain resilience, and efficient movement, such projects will determine who leads not just in showrooms, but across the entire value chain.

And in typical Maruti fashion, the move has been executed without fanfare. No hyperbole, no grand pronouncements. Just quiet, well-planned infrastructure, ready to carry lakhs of cars—silently, efficiently, and without stopping traffic.

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