Maruti Suzuki bets big on rail logistics to scale up green dispatch, cut emissions

Maruti Suzuki India, the country’s largest carmaker and vehicle exporter, is quietly redrawing the contours of automotive logistics. With the recent inauguration of its in-plant railway siding at Manesar, the company has moved beyond symbolic sustainability gestures and into the realm of large-scale, integrated action.

The siding isn’t just another dispatch facility—it is a marker of how Maruti’s logistics philosophy is evolving- measured, methodical, and aligned with both commercial necessity and environmental responsibility.

A fully integrated rail facility at Manesar

The Manesar siding, now officially India’s largest for any automaker, is spread across 46 acres inside the manufacturing campus and features a fully electrified 8.2 km corridor. Developed in partnership with the Haryana Orbital Rail Corporation Ltd (HORCL)—a joint venture involving Indian Railways, HRIDC, HSIIDC, GMDA, AllCargo Logistics, and Maruti Suzuki itself—this facility is not merely an operational convenience. It’s a reflection of how infrastructure and production are now being planned as one ecosystem.

With a total investment of ₹452 crore, including ₹127 crore for internal yard development and ₹325 crore as equity in HORCL, the siding is designed to dispatch up to 4.5 lakh vehicles annually. Cars move directly from the assembly line to rakes—cutting out interim handling, staging, and associated risks.

As Hisashi Takeuchi, Managing Director & CEO of Maruti Suzuki India, put it during the inauguration, this project underscores the company's commitment to “India’s growth, in harmony with the environment," and marks a significant step toward its vision of cleaner and more efficient logistics.

A seamless loop from line to rake

Rahul Bharti, Executive Officer – Corporate Affairs, Maruti Suzuki India, explained that the new Manesar automotive railway siding is a part of a reimagined logistics spine. “This is about minimising movement, minimising handling, and maximising predictability. The cars move straight from the assembly line to the train. It’s not just more efficient—it’s more reliable."

Bharti highlighted that Maruti has been working closely with Indian Railways to ensure alignment on scheduling, slotting, and future rake design. The company currently operates over 40 flexi-deck rakes, and is collaborating with wagon manufacturers to develop new rakes that can accommodate taller SUVs—an insight that reflects Maruti’s forward-looking understanding of both vehicle and logistics trends.

He also pointed to bottlenecks at nearby nodes such as Pataudi Road station, noting that resolution discussions are ongoing with railway authorities to ease throughput as volume scales up.

From Manesar, Maruti now has direct reach to 17 hubs and 380 cities, and exports via Mundra and Pipavav are increasingly handled via rail. This network significantly reduces pressure on road transport while improving end-to-end visibility.

A decade of quiet progress on rails

Maruti Suzuki’s shift toward rail-based logistics began in 2013, when it became the first automaker in India to receive an Automobile Freight Train Operator (AFTO) licence. Since then, the company has steadily built up its rail dispatch capabilities—from its first rake in 2014 to operating over 40 flexi-deck auto-wagon rakes today. As of June 2025, Maruti has dispatched more than 25 lakh cars via rail, with a record 5.18 lakh units moved in FY24–25 alone, accounting for over 24 per cent of its total dispatches.

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

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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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