Neutral impactSector
Vehicle transport through trains won’t hurt truck freight significantly: SIAM President
BusinessLine 1 hr ago·7 Sept 2026, 3:55 pm
The Society of Indian Automobile Manufacturers (SIAM) President, Shenu Agarwal, has clarified that the increasing use of trains for vehicle transport will not significantly impact the truck freight industry. He argues that while rail transport is more efficient for moving large volumes, it cannot replace the comprehensive door-to-door service that trucks currently provide. This distinction is crucial for understanding the logistics landscape, as different modes of transport serve specific needs rather than competing directly for the same market share.
For investors, this news suggests that the trucking sector is unlikely to face an existential threat from rail expansion. The two industries are likely to coexist, with rail handling bulk movement and trucks managing the last-mile delivery. This balance supports the broader logistics and transportation ecosystem. Investors should monitor how logistics companies adapt to this complementary relationship and look for operational efficiencies that leverage both rail and road networks.
Moving forward, the focus should be on how companies integrate these transport modes to optimize costs and delivery times. The ability to seamlessly switch between rail and road could become a competitive advantage. Watch for updates on infrastructure developments and policy changes that might further influence the dynamics between rail and road freight in the coming quarters.
Excerpt from BusinessLine
Demand for truck freight will remain unaffected despite the growing reliance on railway sidings for vehicle transport, Shenu Agarwal, President, Society of Indian Automobile Manufacturers (SIAM), told businessline . “There has been a lot of chatter about how railways will affect truck trade. But I don’t find much…Read the original at BusinessLine
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