In 2024, Hyundai Motor India (HMIL) successfully transported 26% of its domestic wholesale volume, equivalent to 1,56,724 units, using rail freight. This initiative led to a reduction of 18,352 tons of CO2 emissions, according to the company. Leveraging Indian Railways’ extensive network, Hyundai optimized its logistics, including a fully rail-based dispatch system to the North-East region.
Since 2021, the company has transported a total of 5,37,499 vehicles via rail, avoiding 63,452 tons of CO2 emissions. By opting for rail over road transport, HMIL has significantly enhanced its sustainability efforts, contributing to a smaller environmental footprint.
Tarun Garg, Whole-time Director and Chief Operating Officer of HMIL, highlighted the company’s ongoing commitment to sustainability, particularly in its logistics operations. He noted that using the infrastructure of Indian Railways to move vehicles from the manufacturing hub in Sriperumbudur, Chennai, to locations across India has played a crucial role in reducing emissions.
With the Indian government’s continued investment in rail infrastructure, such as dedicated freight corridors and energy-efficient rolling stock, HMIL plans to increase its use of rail transport for logistics. This strategy is in line with the company’s long-term goals of minimizing environmental impact while streamlining its supply chain.
Many companies, including Hyundai, have increasingly turned to rail freight to cut costs and environmental impacts. Rail is much more fuel-efficient than road transport, contributing to lower greenhouse gas emissions. The Indian Railways’ initiatives, such as the development of Dedicated Freight Corridors (DFCs), aim to further enhance the efficiency and capacity of cargo transport, making rail a more viable option for businesses.
Using rail for freight over road transport has a significant role in reducing carbon emissions. Rail produces about one-fifth of the emissions generated by road transport for every ton of freight moved over 1 kilometer.
The Indian government’s focus on modernizing and expanding the rail network, which includes electrifying railway lines and improving freight-handling infrastructure, has made rail freight a competitive and environmentally friendly logistics option.
Hyundai Motor India, founded in 1996, is one of the largest car manufacturers in India, with a plant in Sriperumbudur that produces over 7.5 lakh vehicles annually. The plant serves both domestic and export markets, offering a wide range of vehicles including hatchbacks, sedans, and SUVs.
