Rolling Stock Market in India 2019-2025

October 9, 2020
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  1.   Indian Railways generated annual traffic revenue of ~2 Lac crore INR in FY 2020 or ~$28 Billion. Freight traffic accounted for more than 70% of overall revenues in FY 2020. Revenue has grown at 5% CAGR in past 5 years but profitability has reduced drastically in past 4 years, due to growing infrastructure and modernization expenses 
  2. Indian rolling stock manufacturing is majorly carried out by government owned companies but freight wagons and metro coaches are manufactured predominantly by private companies.
  3. Although Freight wagons account for ~60% of the rolling stock manufacturing every year, due to low individual pricing they account for only 12% of the overall market size by Revenue. On the other hand, Intercity and EMU coach production account for ~35-37% of the rolling stock production, but accounts for ~50% of the market size
  4. Switch to a) electricity from Diesel and b) Solar powered electricity from coal powered electricity will be the two pivots of Indian Railways green strategy
  5.    Total rolling stock PARC in India at present is about 392,743 units. Freight Wagons account for ~76%, followed by Intercity coaches -16%, metro, EMU and locomotives make up for just 8% of the overall rolling stock fleet


The Indian Railways contributes to ~3% of the country’s gross domestic product (GDP) and has social obligations pegged at $5.3 Billion annually. It is among the few government-owned enterprises which has been incurring losses year-after-year. Railways around the world, like in the US, Europe and Japan have undergone ownership changes. But, Indian railways, continues to be monitored by government.

In coming years, the Indian railways is all set witness significant changes. The Indian Railways is planning to purchase locomotives, coaches, train sets, Electric Multiple Units (EMUs) from private manufacturers instead of buying them from the state-run companies



The Indian railways’ plan of exporting its coaches in the global $180 Billion rolling stock market will be major growth driver for rolling stock market in India. New coach manufacturing in India has already got a boost by record high CAPEX allocation of ~$900M in the FY 2019-20 budget, a sharp increase as compared to just ~$500M in FY 2018-2019.



ParameterOperationalUnder constructionApproved
Metro networks1079
Type of citiesTier-1- 7, Tier- 2- 3All tier-2All tier-2


As of Oct 2020, there are 10 metro networks in India with more than 1,500 coaches. By 2025, the number will go up to 25+ networks with 3,500+ coaches, creating demand for 2000+ additional coaches.



Infographic : Rolling Stock Market in India


The Indian railway industry was a completely closed industry in the sense that most of the manufacturing and operations of rolling stock was carried out by the state-owned companies. But now, in FY 2019-2020, all of that is set to change. The railways will have 150 private trains by 2023 to start with and the routes that will go for bidding are still being worked upon. During bidding, the operators will be given options — import, buy rakes from an Indian company or on lease.


This move has made the Indian rolling stock market very attractive for International rolling stock suppliers and component manufacturers alike.


The dedicated freight corridor between Delhi-Mumbai, Delhi-Kolkata will also create new demand for cargo wagons as the new corridor will support max speed up to 100kph against existing 60kph.


The corporatisation of rail manufacturing is essential for upgrading the intercity trains to a max speed capability of 160-200kph from 110-130kph presently.


The rolling stock market in India will be worth ~$5 Billion or ~37,000 Crore INR  by 2025



As of Oct 2020, there are three state owned coach manufacturing facilities in India with a combined manufacturing capacity of ~4,200 coaches per annum. Hyundai Rotem, Bombardier are among the popular choice of metro network operators in India but they do not manufacture locally. As of Oct 2020, only Alstom India and BEML– a state owned enterprise manufactures metro coaches, and EMUs apart from the three state owned companies.




July 2020- Indian Railways invited global tender from private companies to run trains on 109 routes. The private trains are proposed to be run in 12 clusters across the railway network

June 2020- More than 2,45,400 bio-toilets were fitted in 68,800 rail coaches, taking installation of bio toilets to 100%.

Feb 2020: India’s Bangalore Metro Rail Corporation Ltd. (BMRCL) awarded a Rs. 1,578 Crore ( @ 7.3 crore per coach, cheapest metro bid cost ever)contract to China’s CRRC Corporation’s subsidiary for 36 train sets consisting of 216 coaches

Oct 2019– BEML which has ~almost 50% market share in metro cars in India inaugurated a bogie and traction motor testing facility at its metro car manufacturing plant at the BEML Bangalore Complex

Oct 2019–Indian Railways planned to invite private domestic and international operators to bid for operating passenger trains on a lease basis on 25 inter-city routes covering distances from 500-700km.Private operators will be required to pay haulage fees along with the lease fee

Oct 2019-  Indian Railways planned to procure 100 new trains by 2022 to increase the speed of services. Initially seven trains will be imported and the remaining trains will be manufactured in India under a technology transfer arrangement

Oct 2019–Indian Railways planned to convert all LHB trains to HoG(Head on generation) system by the end of this year. HOG taps power supply overhead power lines and distributes it to train coaches and does not need a power generator car(reducing 105 DB per car)

July 2019- The Finance Minister of India announced that the state does not have  funds to make  heavy investments($700 Billion) required to modernize Indian Railways between 2019-2030. Hence, the PPP(Public private participation) model is being considered 

May 2019– There was a backlog of 25,000 freight wagons, due from private suppliers. The state owned indian railways has a wagon manufacturing capacity of just 4,000 units per annum. Coal and coke account for ~60% of freight traffic, followed by cement and foodgrains in India




  1. Indian Coach Factory ( Indian Railways)
  2. Modern Coach Factory ( Indian Railways)
  3. Rail Coach Factory(Indian Railways)
  4. BEML
  5. Bombardier Transportation India
  6. CAF Power & Automation
  7. Hyundai Rotem 
  8. Texmaco Rail and Engineering
  9. Medha Servo Drives
  10. Titagarh Wagons
  11. Jindal Rail, Modern Industries
  12. Hindustan Engineering
  13. BESCO 
  14. Jupiter Wagons
  15. Alstom India




  1. Market size and forecast of Rolling stock market in India, by application and product type
  2. Opportunity for traction motor, HVAC, signaling, pantograph, seats and auxiliary suppliers in the rolling stock market in India
  3. Details on new rolling stock development and infrastructure upgradation of Indian railways
  4. Market share of major vendors by 2025
  5. Key criterion for vendor selection by Indian railway
Sl noTopic
1Market Segmentation
2Scope of the report
4Research Methodology
5Executive Summary
7Insights from Industry stakeholders
8Cost breakdown of Product by sub-components and average profit margin
9Disruptive innovation in the Industry
10Technology trends in the Industry
11Consumer trends in the industry
12Recent Production Milestones
13Component Manufacturing in US, EU and China
14COVID-19 impact on overall market
15COVID-19 impact on Production of components
16COVID-19 impact on Point of sale
17Market Segmentation, Dynamics and Forecast by Geography, 2020-2025
18Market Segmentation, Dynamics and Forecast by Product Type, 2020-2025
19Market Segmentation, Dynamics and Forecast by Application, 2020-2025
20Market Segmentation, Dynamics and Forecast by End use, 2020-2025
21Product installation rate by OEM, 2020
22Incline/Decline in Average B-2-B selling price in past 5 years
23Competition from substitute products
24Gross margin and average profitability of suppliers
25New product development in past 12 months
26M&A in past 12 months
27Growth strategy of leading players
28Market share of vendors, 2020
29Company Profiles
30Unmet needs and opportunity for new suppliers


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