Auto Inc upbeat on rlys' vehicle usage projects

With Indian Railways having developed two automobile wagon rakes (trains), with a holding capacity of almost 550 cars every for transport of vehicles from sites closer to their manufacturing bases to their last destination, auto manufacturers say they look forward to increasingly using this form of ship for their products.

The global average of movement of vehicles using the railways is about 20 per cent. However, in India this figure is only two per cent. Apart from equipment, movement by road is still cheaper than what the railways charge.

However, Maruti Suzuki, India's most important car maker, say they have transported well over 200,000 cars using the railways and aim to increase the railway share to 20-30 per cent, from the present two per cent, in their vehicle movements.

equally, other players like Hyundai Motors, General Motors, Volkswagen, Tata Motors and Mahindra & Mahindra also emerge to be keen on using the railways as mode of transporting their production.

To cash in on the thriving demand, while also generating additional revenue, IR has proposed to set up 10-15 dedicated auto hubs that will serve as terminals and be built with the help of private parties under a public-private partnership programmed. IR hopes to generate Rs 1,500 core annual from the planned auto hubs.


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