Hyundai: Driving Sustainability with Rail Freight Revolution

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Hyundai Motor India Limited (HMIL) transported 26% of its total domestic wholesale volume by rail in 2024 (Credit: Tom Fisk on Pexels)
We explore how Hyundai Motor India Limited (HMIL) transported 26% of its total domestic wholesale volume by rail in 2024, reducing 18,352 tonnes of CO2

Hyundai Motor India Limited (HMIL) is reshaping sustainable logistics in India by fully embracing rail freight for domestic vehicle transportation.

The approach not only reduces emissions but also ensures efficient delivery across the country.

In 2024 alone, Hyundai transported 156,724 units – 26% of its total domestic wholesale volume – by rail, reducing carbon dioxide (CO2) emissions by 18,352 tonnes in the process.  

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Hyundai’s reliance on rail freight extends beyond a singular year's achievement. Over the four years from 2021 to 2024, HMIL dispatched an impressive 537,499 units by rail, cutting down CO2 emissions by a staggering 63,452 tonnes.

For the North-East region, rail accounts for 100% of vehicle deliveries, showcasing the company's strategic use of India’s growing railway infrastructure.

At the heart of Hyundai's logistics operations is its Sriperumbudur dispatch hub in Chennai. This facility manages vehicle distribution nationwide, ensuring timely and eco-friendly transportation. 

Hyundai’s strategy aligns with India’s wider ambitious rail infrastructure developments.

The government is investing heavily in initiatives such as the Dedicated Freight Corridors (DFCs), designed to improve freight transport efficiency while reducing congestion on conventional rail networks. These corridors are expected to handle higher freight volumes and drive economic growth while significantly cutting emissions.

Tarun Garg, Whole-time Director and Chief Operating Officer at Hyundai Motor India Limited

At HMIL, we have been relentless in our pursuit of promoting sustainability in all facets of our operations, be it manufacturing, dispatches, sales or after-sales support.

By utilising Indian Railways’ extensive rail-network for delivering Hyundai vehicles from our plant in Sriperumbudur, Chennai, to multiple locations across India, we have effectively prevented 18,352 tonnes of CO2 emissions in CY 2024, dispatching 1,56,724 units in the process.

As the Government of India continues to upgrade the rail infrastructure with dedicated freight corridors, and modern and energy efficient rolling stock ensuring faster movement of goods, HMIL remains committed to utilising rail freight to optimise its logistic operations, leading to long-term reduction in emissions.

Tarun Garg, Whole-time Director and Chief Operating Officer at Hyundai Motor India Limited

India’s rail network: The backbone of green logistics

India boasts the fourth-largest rail network in the world, catering to 26 million passengers and transporting 3.37 million tonnes of freight daily. With 100% electrified tracks across 14 states and union territories, rail remains a key player in the country’s logistics landscape.

The government’s focus on rail modernisation is already yielding results. Between 2021 and 2023, the freight handled by Indian Railways jumped by 157%, from 1,231 million tonnes to 3,167 million tonnes.

The DFCs, inaugurated in December 2020, are a cornerstone of the National Rail Plan, which aims to increase rail’s share of freight traffic from 28% to 44% by 2051.

Prime Minister Narendra Modi has called the DFC project a "game changer," linking it directly to India's National Logistics Policy. The policy aims to reduce logistics costs from 15% of GDP to 8% by 2030, making freight transport more cost-effective and environmentally friendly.

Studies, such as one by the University of New South Wales, estimate that DFCs could boost India’s GDP by ₹16,000 crore. This aligns with Rail Partners' 'Freight Expectations' estimate that rail freight generates 81% less particulate matter than road freight, even if both modes are fully electrified.

Hyundai’s reliance on rail complements these objectives, contributing to a cleaner and more efficient logistics network.

(Credit: Hyundai)

A vision for the future

Hyundai’s initiatives are a testament to how businesses can leverage government projects for mutual benefit.

By tapping into India’s expansive rail network, Hyundai has not only reduced costs but also played a role in shaping a greener future for the country.

As DFCs expand capacity, Hyundai is well-positioned to further reduce its environmental footprint while maintaining efficient vehicle distribution.

In a world increasingly focused on sustainability, Hyundai’s efforts offer a blueprint for other businesses to follow. With the Indian government’s push to modernise rail infrastructure, the synergy between public and private sectors is poised to drive significant environmental and economic benefits in the years to come.


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