Indian Railways goes premium with more AC coaches per train – Key details insideIndian Railways is moving towards a premiumization strategy for its passenger segment. This is evident from the nearly doubled per-passenger revenue in the past six years, the increased production of premium coaches, and the introduction of new high-end trains. This shift towards premium services at higher fares has helped reduce the...
more... reliance on freight revenues to subsidize passenger operations, without sparking political controversy over blanket fare hikes. The production of AC coaches, particularly 3rd AC, AC 3-tier economy, 2nd AC, and 1st AC, has increased significantly, while the production of sleeper and general coaches has been reduced. This change in coach production is mirrored in the revenue growth, which has risen from Rs 62.66 per passenger in 2019-20 to Rs 107.15 in 2024-25. The move towards premiumization is also being driven by the increased production of AC trains, including the Vande Bharat Express, which offer higher yields per trip due to higher ticket prices. The government aims to upgrade 40,000 regular bogies to Vande Bharat standards by 2030, further solidifying this premiumization strategy. While these changes are expected to reduce the government subsidy for passenger services, which is currently 55%, experts believe the passenger segment will continue to be unprofitable.
Indian Railways apna passenger segment ke liye premiumization ki taraf ja raha hai. Pichhle chhe saalon mein per-passenger revenue almost double ho gaya hai, aur iske saath saath premium coaches ki production badhi hai aur new high-end trains bhi launch hue hain. Yeh premium services par zyada paise charge...
more... karne ki strategy passenger segment ko freight se subsidy par depend karne se kam karne mein madad kar rahi hai, bina political controversies ke. Production of AC coaches, especially 3rd AC, AC 3-tier economy, 2nd AC aur 1st AC, bahut badhi hai, aur sleeper and general coaches ki production kam hui hai. Production mein yeh badlaav revenue mein bhi dikhai deta hai, jo ki 2019-20 mein Rs 62.66 per passenger se badhkar 2024-25 mein Rs 107.15 ho gaya hai. Premiumization ki taraf yeh move AC trains ki production badhne ki wajah se bhi hai, jaise ki Vande Bharat Express, jo ki zyada ticket prices ki wajah se per trip mein zyada yield deta hai. Sarkar ka plan hai ki 40,000 regular bogies ko 2030 tak Vande Bharat standard tak upgrade kiya jaaye, jisse yeh premiumization strategy aur strong ho jayegi. Halaanki yeh changes passenger services ke liye government subsidy, jo ki currently 55% hai, kam karne ki ummeed hai, experts ka maanana hai ki passenger segment loss making hi rahega.
