Used Commercial Truck Sales See Uplift In June 2024, Reports Shriram Mobility

Updated: Monday, July 8, 2024, 14:36 [IST]

The July 2024 edition of the Shriram Mobility Bulletin, released today, highlights significant trends in the automobile and logistics sectors. Motor car sales dropped by 9%, while fuel consumption for petrol and diesel fell by 5% in June 2024. However, year-over-year (YoY) consumption increased by 4% and 1%, respectively.

Truck rentals on the Mumbai-Kolkata-Mumbai route decreased by 2.6%, but saw a 4.1% rise on the Kolkata-Guwahati-Kolkata route. Sales of used commercial vehicles showed YoY growth, with a 7% increase for 7.5 to 16-ton capacity vehicles and a substantial 43% rise for 31 to 36-ton capacity vehicles.

Impact of Seasonal Changes and Government Policies

Shriram Finance Limited anticipates that the ongoing Kharif season, which will head towards harvest by mid-August, could boost sales of agricultural, trailer, and commercial tractors. The heatwave, delayed monsoons, elections, and high interest rates have stressed rural areas, impacting the logistics sector in June 2024.

Passenger vehicle sales experienced a notable decline, falling by 6.77% YoY and 7.18% month-over-month (MoM). Inventory levels at vehicle dealerships have reached an all-time high, ranging from 62 to 67 days.

Trends in Used Vehicle Market

Despite rising prices of used trucks on a YoY basis, there was some cooling off in June across many categories. FASTag toll collections rose by 2% in volume and 7% in value on a YoY basis.

E-way bill generation showed an MoM increase of 8% for intra-state transactions and a 5% rise for inter-state transactions in May.

Industry Insights from Shriram Finance Ltd.

Mr. YS Chakravarti, MD & CEO of Shriram Finance Ltd., commented on the June 2024 Mobility Bulletin: "With the new government in place and with monsoon rain expected to gain strength, businesses are hopeful that policy action from the government will help push economic activity into a higher orbit. The slowdown across sectors including road transport, vehicle sales appears temporary."

The Houthi attack last November has clogged up major transhipment hubs, increasing demand for containers significantly.

The data presented in this bulletin provides a comprehensive overview of current market conditions and future expectations within the automobile and logistics sectors.