Increasing the efficiency and reliability of modern railway transport is accompanied by an increase in monitoring and diagnostic systems for the current state of electric drives. Modern railway transport contains a large number of induction motors to ensure the operation of the drives of various mechanisms. In the article, based on the operational statistics of engine failures and the proposed scheme for diagnosing them, studies were carried out and a model was developed for assessing the reliability of a transport system equipped with an on-board diagnostic system for the current state. When building the models, the Markov method was used, including the construction of graphs for the five most relevant states of the induction electric motor during operation. The results obtained are relevant for evaluating the effectiveness of using the built-in diagnostic system and scheduling routine maintenance, which will affect the efficiency of railway transport. Based on the process of the diagnosis of railway transport systems with induction motors, five operating states of the object studied were interpreted: the state of full operation, state “S0”; the state of incomplete serviceability, state “S1”; critical serviceability, state “S2”; the state of the pre-damage condition, state “S3”; the state of unserviceability (defect), state “S4”. Subsequently, a five-state model of the operation process of railway transport systems with induction motors was developed. This model is also described by equations of state: Kolmogorov–Chapman equations. The reliability quantities determined form the basis for simulation reliability studies. The effect of the simulation study is the reliability quantities determined in the form of reliability functions and probabilities of the occurrences of the operating states of railway transport systems with induction motors; an important part of the reliability study of the system examined is to estimate the times of the occurrences in the object studied of the operating states in the future.