Shriram Mobility Bulletin: Key Insights on India's Automotive and Logistics Sectors

The July 2024 edition of the Shriram Mobility Bulletin reports declines in motor car sales and fuel consumption. However, a significant rise in prices and sales of used commercial vehicles is noted. FASTag toll collections and e-way bill generation also saw growth, indicating a dynamic market landscape.

In its July 2024 edition, the Shriram Mobility Bulletin released today in Mumbai, provides a comprehensive overview of the current state of India's automotive and logistics sectors. Notably, motor car sales dipped by 9%, while fuel consumption for petrol and diesel decreased by 5% in June 2024.

Interestingly, year-over-year (YoY) fuel consumption increased marginally by 4% for petrol and 1% for diesel. On the logistics front, truck rentals declined by 2.6% on the Mumbai-Kolkata-Mumbai route but increased by 4.1% on the Kolkata-Guwahati-Kolkata route.

Sales of used commercial vehicles surged, with 7.5 to 16-ton vehicles seeing a 7% YoY growth, and 31 to 36-ton vehicles spiking by 43%. FASTag toll collections saw a 2% rise in volume and 7% in value YoY. Moreover, e-way bill generation increased by 8% for intra-state and 5% for inter-state transactions in May 2024.

YS Chakravarti, MD & CEO of Shriram Finance Ltd., commented, "With a new government in place and monsoon rains expected to strengthen, businesses are hopeful that future policy actions will drive economic activity. The current slowdown in sectors including road transport and vehicle sales appears to be temporary."

Shriram Finance Limited sees the ongoing Kharif season as a potential booster for agricultural, trailer, and commercial tractor sales. It remains a dominant player in financing pre-owned commercial vehicles, with a pan-India presence and a diversified range of financial products.

(With inputs from agencies.)