Mumbai, August 07, 2024: After a sluggish couple of months, truck rentals across major routes surged in July, driven by preparations for the upcoming festival season. As manufacturers ramp up goods movement to key commercial hubs, demand for trucks has risen significantly, according to the latest Shriram Mobility Bulletin. The fleet occupancy levels have also seen an uptick, with the Kolkata-Guwahati-Kolkata route experiencing a notable 3.9% increase in trip rentals.
Used Vehicle Market Trends
The used commercial vehicle (UCV) market showed robust year-on-year growth across all weight categories. Prices for 2 to 3.5-ton 4-wheeler UCVs increased by an impressive 47%, followed by a 36% rise in the 1.5 to 2-ton category.
In contrast, the used passenger vehicle market saw a decline. Prices for sedans and compact SUVs dropped by 6% to 10% year-on-year. Notably, the Maruti Swift and Maruti Ertiga experienced a 10% drop in July, while the Mahindra Scorpio and Hyundai Creta saw a 6% decline in resale prices. The used two-wheeler market remained relatively stable, with minor exceptions. Prices for most categories rose, though the Honda Shine and Bajaj Pulsar saw declines of 3% and 2%, respectively.
New Vehicle Sales on the Rise
New vehicle sales showed a positive trend, fueled by heavy discounting. Car sales increased by 11% month-on-month (MoM) and 9% year-on-year (YoY) in July. Two-wheeler sales rose 5% MoM and 17% YoY. Commercial vehicle sales also improved, with E-Rickshaw with cart sales skyrocketing by 87% YoY and commercial tractors seeing a 19% MoM increase.
Market Dynamics and Fuel Consumption
Fuel consumption patterns remained stable for petrol, while diesel consumption dropped by 10% compared to June 2024. Other indicators such as intra-state and inter-state e-way bill generation, the number of suppliers, and e-way bill value all decreased on a MoM basis in June 2024. FASTag toll collections remained flat compared to the previous month.
Positive Sentiment and Future Outlook
YS Chakravarti, MD & CEO of Shriram Finance Ltd., highlighted the optimism in the market, stating, “With the kharif harvest around the corner and substantial water reserves due to good monsoon rains, rural activity is expected to gain momentum in the coming months. Manufacturers are ramping up supplies to commercial hubs in anticipation of higher festive offtake across product categories. We are witnessing sentiment turning positive. Two-wheeler sales, crucial for rural transportation, are expected to perform well. Sales in the D2D (Dussehra to Dhanteras) period may reach 54 to 55 lakh units, up from nearly 45 lakh last year.”
