By Priya Singh
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Updated On: 10-Jul-2024 02:46 PM
It highlights several significant trends and developments in June 2024, providing insights into the current state of the market and future growth projections.
Key Highlights:
The Shriram Mobility Bulletin's July 2024 edition includes an in-depth examination of numerous major aspects affecting the automotive and logistics industries. The report discusses truck rental rates, vehicle sales, average price trends for used commercial vehicles, diesel and petrol usage, FasTag collection, bulk and container traffic in ports, and e-way bill information.
It highlights several significant trends and developments in June 2024, providing insights into the current state of the market and future growth projections.
Used Commercial Truck Prices Accelerate
In June 2024, the prices of used commercial trucks increased due to a heatwave, delayed monsoons, and high interest rates affecting the rural logistics sector.
Despite these challenges, the market for used trucks remained strong, with prices rising sharply year-on-year (YoY). However, some categories experienced a cooling off in June.
Passenger Vehicle Sales Decline
Passenger vehicle sales fell significantly, with a 6.77% YoY decline and a 7.18% month-over-month (MoM) drop. Inventory levels at vehicle dealerships reached an all-time high, ranging from 62 to 67 days, indicating a considerable slowdown in sales.
The drop is linked to rising vehicle costs following the phase-II BS-VI emission norms, elevated interest rates, and strained rural incomes.
E-Way Bill Data and FasTag Collection
E-way bill generation showed a MoM increase of 8% for intra-state and 5% for inter-state transactions in May 2024, indicating robust economic activity.
FasTag toll collections rose by 2% in volume and 7% in value on a YoY basis, reflecting increased usage and adoption of digital toll payment systems.
Fuel Consumption and Truck Rental
In June 2024, fuel consumption for petrol and diesel fell by 5%, although YoY consumption climbed by 4% and 1%, respectively. Truck rental rates showed conflicting results, with the Mumbai-Kolkata-Mumbai route falling 2.6% and the Kolkata-Guwahati-Kolkata route rising 4.1%.
These swings reflect the industry's overall economic difficulties as well as logistical challenges.
Bulk and Container Traffic In Ports
Bulk cargo handled at major ports in India decreased by 4% MoM, from 71.9 million tonnes to 69.08 million tonnes. However, containerised cargo saw a marginal 1% MoM increase, with a notable 16% YoY surge, indicating resilience in container traffic despite broader logistical challenges.
Optimism for Future Growth
YS Chakravarti, MD & CEO of Shriram Finance Ltd, said, "With the new government in place and monsoon rains expected to increase, businesses are hopeful that government policy action will help push economic activity into a higher orbit. The slowdown in various areas, including road transportation and vehicle sales, appears to be short-term."
Shriram Finance Limited believes that the upcoming Kharif season, which ends in mid-August, will enhance sales of agricultural, trailer, and commercial tractors. This seasonal rise, combined with government programs and a reviving economic environment, is likely to drive growth in the months ahead.
Also Read: FADA Sales Report June 2024: CV Segment Experienced A decline of 4.74% YOY.
CMV360 Says
The Shriram Mobility Bulletin provides a comprehensive overview of the challenges and opportunities facing the automobile and logistics sectors.
While the current economic conditions present hurdles, the expected policy actions and seasonal factors offer a glimmer of hope for a rebound. This optimistic outlook suggests that the industry may soon see a period of growth and stability.