Automotive Logistics

Current Indian Scenario

M M Singh
Chief Mentor

Maruti Suzuki India Ltd.

SIAM Automotive Logistics
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2006

2026

Background...

2021
2016

SIAM Automotive Logistics

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09

2011

AM
P

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20

Industry joined hands to take on

the logistics challenge
Formation of SIAM Logistics Forum in
March, 2008.
Objective: To improve economy of
operations
by bringing improvements in logistics
Developing common
understanding
between OEMs

Improvement in
logistics
infrastructure

Promoting best
logistics practices

Collaborative effort

Railways

Engagement with
global logistics
companies

Consolidation

Road & Ports

Pilot projects

Background...
Automotive Mission Plan - AMP 2016 put Auto
Industry on Fast Growth Track
Industry Focus on Customer Delight through
Faster Deliveries; Factory Fresh Quality

Logistics had its own challenges

Congesti
on

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Driver
Scarcity

Fuel Cost

SIAM Automotive Logistics

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Emissions

Structure of Logistics
Industry
90% of Transporters
having less than US$ 0.2
million turnover
Fragmente
d

70% - Road
30% Railways
Auto sector
98% - Road
Just 2% Rail

Dependenc
e on Road

Logistics
Industry
Structur
e

75% of
Transporters
having just 1
truck
Small
Players

Small and fragmented logistics cos. could not

invest to upgrade logistics performance

Fall out for Auto Industry

Average
Truck
Speed
low

Delays
at check
points

Logistics
Bottlene
cks

High
Freight
cost

High
turnarou
nd time
at Ports

Deficiencies in logistics infrastructure causing

1 to 2% cost disadvantage to Auto Industry

Major Initiatives
Inbound Logistics
Improvement in Truck fill rates higher
asset utilization
Improvement in Packaging
Consolidation
Outbound Logistics
Development of Ports and RORO
terminals
Multi-modal Logistics : Road, Rail, Coastal
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Development of Export
Infrastructure at Mundra Port

Mundra Port

India emerging as a hub

of small/ compact cars
manufacturing for global
markets

tomobiles in Container Trains .

Small cars in Container (40 feet High Cube)

3 Cars

Now 5 small
cars
per container

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High capacity

4 Cars

Use of Ramps/
Frames

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5 cars

Cost
reduction in
Double Stack
mode

Not
dependent on
Auto return
load

Multi-modal Logistics systems

Rail mode could supplement Road mode
Challenges :
Railways carrying bulk and heavy cargo
Coal, Iron-Ore, POL etc.

Automobiles being light and voluminous misfit in

the freight structure
Rail freight 20~40% more than Road freight

Very limited availability of Rail infrastructure to

suit Automobiles
Wagons, Terminals
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2006

2026

Transformation in 5 years

2011
2016

2021

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Transformation in 5 years
PV

20

2W

30000

Vehicles in
millions

Carriers in
millions

15

20000 13,000
10000

10
5
0

24,000

2008
2014
Increase in dispatch
volumes

NMGs
125 Cars
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2008

2014

2026

Number of carriers

IR Fixed Deck:
265 Cars
Development in Rail
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ModeLogistics
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Flexi-Deck:
318 Cars

Rail mode - Breaking the

ice
Close interaction with IR and Active support from
Railway Board and RDSO resulted in :
New Policies
Automobile Freight Train Operator Policy (AFTO)
Auto-Hub
Private Freight Terminal
New Wagons
Double deck; adjustable height
Higher Capacity, Speed
New Tarif
Freight structure for BCACBM Rake
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SIAM Automotive Logistics

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MSIL pioneered new

Auto-Wagon
2012- Prototype Development &
2011- Design
Development
Trials
Conceptualization

Trials

5th March 2014 : Flag-Off of Indias First Flexi-Deck Rake

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2006

2026

Current Scenario
20

2011

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14
20

2016

2021

09

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Current Scenario
Additional Private Rakes are in operations
Total Carrying Capacity : 1 lac+ veh./yr
Higher Capacity Auto-Wagon Design and
drop in Diesel price made Rail freight
competitive to Road
Government is considering
taxation reforms : favorable to inter-state
logistics
Technological interventions to curtail wait
at tolls and state borders
Enforcing CMV regulations Size and
Radical
Weightshift in Logistics Equation.
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Rationalization of diesel
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2006

2026

Preparing for future

20

2011

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14
20

2016

2021

09

AMP 2026 - Draft

Vision 2026 envisages a 3.5x growth in volumes for
Indian Auto industry
Aggregate revenue to increase by 5x to hit $300bn
Vision 2026 will enable the Indian auto industry to:
Contribute around 13% to GDP
Generation additional 100 million jobs
Attract more than US$ 80 bn in investments
Source : IMACS
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Automobile Market Scenario

Passenger Vehicles

Two Wheelers

Passenger Vehicles (in Mn units)

No of Carrirers
57,000

16

Dispatch Volume (in Mn units)

No of Carrirers
60,000
50,000

12

60

31,000

45
25,000

40,000
30

8
13.4
4

10,000
1

55.5

30,000
20,000

14,000
3.3

35,000

15,000
15

10,000

18.1

5,000

2
Source : IMACS

Will road infrastructure be able to cater the impending 300% increase in

automobile carriers ?
Multi-Modal solution is inevitable

Multimodal Logistics (Road + Rail)

Rail may carry 50% of increased
volumes
Passenger Vehicles
Dispatch Volume thru Road (in Mn units)

Dispatch Volume thru Road (in Mn units)

Dispatch Volume thru Rail (in Mn units)

Dispatch Volume thru Rail (in Mn units)

No of Carrirers

No of Carrirers

16

35000

12
8
4

Two Wheelers

5.2
14000

40000
30000

20000

0.2
3.1
2015

2020

8.3

25000
30

10000

15

0
2026

10000
0.9

20000
15000

5.6

10000

31

36
5000

17

5000

19.3

45

15000

7.1

25000

35000

20000

1.3

60

0
1

3
Source : IMACS

Logistics Share of Business Road : 65% Rail : 35%

Auto logistics by Rail : Next Level

Pertinent Indian Railways Policies
Comprehensive Wagon designs
Auto friendly Rail Terminals
First and Last mile connectivity
Innovative Technology for eficient
operations
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All stake-holders to collaborate

Indian
Railways
Wagon
Design
er, Mfr.

OEMs

Logistics
Service
Providers

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Indian
Railwa
Expectations
ys

from Indian Railways

Policies for faster clearances

Wagon Designs
Speed
Routes
Policies / Mechanism for operational efficiency
Route fixation
Time table
Higher priority to high speed Auto-Freight trains
Capacity Increase
Dedicated Freight Tracks
Locomotives
Crew
Maintenance facilities
Creation of Auto handling terminals at key destinations
Technology
Tracking and Monitoring
Competitive Freight Structure

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Wagon
Design
er, Mfr.

Expectations from Wagon Designers,

Manufacturers

Design innovations for

Further flexibility : Vehicle mix (Cars, SUVs, MUVs,
2W etc.)
Operational ease
Minimal maintenance

Reduction in lead times

Design to Prototype to Customer

Manufacturing excellence
Innovative techniques / skills Fabrication,
Welding, Painting

Manufacturing with robust quality systems

Process Quality
Product Quality

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OEMs

Expectations from OEMs

Unified approach for developing multimodal logistics (MML)

Devise distribution model to suit MML
Eg. Hub and Spoke

Endorse innovative systems

Support development of key
infrastructure
Design
Investment

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Logistics
Service
Providers

Expectations from Logistics

Service Providers

Develop multi-modal capabilities

Imbibing highly efficient operating
systems
Inculcate culture of Safety
Develop skilled and motivated
workforce
Affinity to investment
Infrastructure
Technology

Costing with Long term perspective

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Typical Auto Handling Rail Terminal

Unhindered approach and connectivity to main roads
Horizontally straight and vertically leveled tracks for Rake
placement
Area for interim parking of automobiles.
Paved, Marked, Gated
Area for loading / unloading of Auto carriers for first / last mile.
Provision for
Adequate Lighting
Isolation of Over Head Traction (OHT)
Inspection / Maintenance of Rakes

Minneapolis,
USA

Logistics Vision

Clean
Green
Fast
Safe
Economical
Let us together strive to achieve higher
goals

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SIAM Automotive Logistics

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Thank you

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SIAM Automotive Logistics

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