How Hyundai is Using Rail to Cut Scope 3 Emissions
Hyundai Motor India Limited (HMIL) is revolutionising logistics in India with a shift towards rail freight for domestic vehicle transportation. The approach aligns with sustainability goals, as it cuts carbon dioxide (CO2) emissions while ensuring efficient delivery across the country.
In 2024, Hyundai transported 156,724 units — 26% of its domestic wholesale volume — by rail, reducing CO2 emissions by 18,352 tonnes.
Over four years (2021–2024), the company dispatched 537,499 units via rail, achieving a remarkable reduction of 63,452 tonnes in emissions. For the North-East region, rail constitutes 100% of vehicle deliveries, highlighting Hyundai's strategic integration of India's expanding railway infrastructure.
Hyundai’s rail freight strategy largely targets Category 4 (Upstream Transportation and Distribution) of the Scope 3 framework.
By relying on rail for moving vehicles from its manufacturing hub in Sriperumbudur, Chennai, to distribution points nationwide, Hyundai cuts emissions tied to upstream logistics.
By utilising rail freight, Hyundai is not only shrinking its carbon footprint but also setting a precedent for other businesses to rethink their supply chains.
Inside India's rail network
India’s rail network is the fourth-largest globally, moving 3.37 million tonnes of freight daily. With 100% electrified tracks spanning 14 states and union territories, it plays a crucial role in reducing the logistics sector’s environmental impact.
Between 2021 and 2023, the volume of freight transported by Indian Railways rose by 157%, reflecting ongoing rail modernisation efforts.
Central to this progress are the Dedicated Freight Corridors (DFCs), launched in December 2020. Designed under India’s National Rail Plan, the DFCs aim to boost rail’s share of freight traffic from 28% to 44% by 2051.
These corridors improve efficiency by separating freight from passenger traffic, allowing for faster and more reliable logistics. Prime Minister Narendra Modi describes the DFC project as a "game changer," noting its alignment with the National Logistics Policy, which seeks to reduce logistics costs from 15% to 8% of GDP by 2030.
Such advancements complement Hyundai’s logistics strategy, positioning the company to benefit from a more sustainable and cost-effective network.
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.
Hyundai’s role in a greener future
Hyundai’s adoption of rail logistics exemplifies how businesses can leverage government infrastructure projects to achieve mutual sustainability goals.
India’s ongoing rail modernisation, paired with Hyundai’s proactive approach, offers an effective blueprint for emission reductions.
The synergy between public and private sectors highlights the potential for significant environmental and economic benefits. For Hyundai, it goes beyond meeting operational goals — it is about shaping a cleaner, more efficient future for logistics in India.
Hyundai’s efforts provide a model for others in the automotive sector, proving that sustainable practices can align with business objectives. As DFCs expand capacity and efficiency, companies like Hyundai are poised to amplify their impact.
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