In 2024, Hyundai Motor India used rail freight to move 1,56,724 units, or 26% of its domestic wholesale volume. According to the firm, this resulted in a decrease of 18,352 tons of CO2 emissions. In order to maximize its logistics, it made use of Indian Railways’ vast network, which included 100% rail dispatches to the Northeast. Hyundai has prevented 63,452 tons of CO2 emissions by transporting 5,37,499 units by rail over the last four years, from 2021 to 2024. HMIL has improved its sustainability initiatives and lessened its environmental impact by using rail freight rather than road freight.
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.