Shriram Mobility Bulletin Highlights Two-Wheeler Growth & Market Dynamics

Abhijeet Singh
10 Jul 2024
10:00 AM
2 Min Read

July 2024 report offers insights into the automobile and logistics sectors.

Shriram Mobility Bulletin Highlights Two-Wheeler Growth & Market Dynamics mobility outlook

The July 2024 edition of the Shriram Mobility Bulletin provides an in-depth analysis of various key aspects impacting the automobile and logistics industry. The report covers truck rental rates, vehicle sales, average price trends of used commercial vehicles, petrol and diesel consumption, FasTag collection, bulk and container traffic in ports, and e-way bill data. The bulletin highlights several significant trends and developments in June 2024, shedding light on the current state of the market and projecting future growth patterns.

Used Commercial Truck Prices Accelerate

June 2024 saw an increase in the prices of used commercial trucks, driven by multiple factors including a heatwave, delayed monsoons, and high interest rates which stressed the rural logistics sector. Despite these challenges, the market for used trucks remains strong, with prices rising sharply year-on-year (YoY), although some categories experienced a cooling off in June.

Passenger Vehicle Sales Decline

Passenger vehicle sales experienced a notable decline, falling by 6.77% YoY and 7.18% month-over-month (MoM). Inventory levels at vehicle dealerships reached an all-time high, ranging from 62 to 67 days, indicating a significant slowdown in sales. The decline in sales is attributed to increased vehicle prices post the implementation of phase-II BS-VI emission norms, higher interest rates, and stressed rural incomes.

Fuel Consumption & Truck Rentals

Fuel consumption for petrol and diesel dropped by 5% in June 2024, although YoY consumption increased by 4% and 1%, respectively. Truck rental rates saw a mixed performance, with a 2.6% decrease on the Mumbai-Kolkata-Mumbai route, while the Kolkata-Guwahati-Kolkata route experienced a 4.1% increase. These fluctuations reflect the broader economic conditions and logistical challenges faced by the industry.

E-Way Bill Data & FasTag Collection

The generation of e-way bills 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.

Bulk & Container Traffic In Ports

The volume of 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.

YS Chakravarti, MD & CEO of Shriram Finance Ltd, stated “With the new government in place and 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 and vehicle sales appears temporary.”

Shriram Finance Limited anticipates that the ongoing Kharif season, which will head towards harvest by mid-August, could boost the sales of agricultural, trailer, and commercial tractors. This seasonal uptick, combined with government policies and a recovering economic environment, is expected to drive growth in the coming months.

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