By. Ravichandran Srinivasan
India’s automotive supply chain is being redrawn. As long-haul trucking shifts to rail, distribution will evolve into a hub-and-spoke model — regional stockyards handling bulk movement by rail and efficient last-mile delivery by road, says, Mr Nirmal Goyal, Chairman, OSL Logistics.
India’s automotive logistics industry is undergoing a paradigm shift, driven by sustainability imperatives, digitalisation, and government policy interventions such as the National Logistics Policy and infrastructural initiatives like PM Gati Shakti and Dedicated Freight Corridors.
Automotive logistics is tilting steadily toward rail, driven by government green logistics initiatives, OEM cost pressures, and growing investments in in-plant railway sidings. Schemes like AFTO – Automobile Freight Train Operator – are enabling faster, greener vehicle movement, prompting a significant shift from long-haul trucking to rail. This will reshape distribution into a hub-and-spoke model where the regional stockyards handling bulk rail movement and road covering last-mile delivery, creating a hybrid logistics ecosystem that fundamentally alters India’s automotive freight balance, Mr. Goyal said.
“At OSL Logistics, we recognise that the future of automotive logistics in India is being reshaped by this modal shift. OSL has aligned its vision with this transformation by leveraging the Indian Railways’ AFTO framework and utilising NMG wagons to move bulk automotive cargo reliably and sustainably. Equally, OSL intends to develop strategically located regional stockyards that act as spokes in the hubandspoke model,” he mentioned.
At the same time, OSL is pragmatic: road transport will continue to carry nearly 60% of India’s freight, remaining indispensable for regional distribution, lastmile connectivity, and flexible cargo handling.
OSL’s vision is equally committed to engaging with stakeholders, through suitable forums, on the pertinent challenges in road logistics that remain unresolved. Advocacy priorities include investment in modern truck terminals and rest areas, streamlining RTO expenses, eliminating informal payments, establishing a fair and transparent freight pricing mechanism, and improving driver welfare.
OSL also believes logistics companies must actively engage truck manufacturers to deliver safer, greener, and more efficient vehicles. This includes adoption of more comfortable cabins, Blind Spot & Moving Off Information Systems, AEB, ESC, fatigue detection, and innovation in electric and hydrogenpowered trucks.
“Through effective execution of its vision, OSL Logistics positions itself not only as a participant in this transformation but as a catalyst — driving innovation, sustainability, and resilience across both modes to build a stronger logistics ecosystem by 2030, Mr. Goyal added.
“India’s logistics future will be defined by a balanced multimodal approach. Rail will emerge as the backbone for longhaul efficiency, while road transport will remain critical for regional flexibility and lastmile delivery.”