In July, manufacturers ramped up the movement of goods to major commercial hubs, anticipating strong festival demand. This activity resulted in an uptick in truck rentals across key trunk routes. Additionally, the upcoming Kharif harvest season contributed to a 19 percent month-on-month growth in commercial tractor sales and a 12 percent month-on-month increase in agricultural tractor sales.
Passenger vehicle sales experienced an 11% month-on-month growth in July, driven by significant discounts despite high inventory levels at vehicle dealerships, with stock ranging between 67 and 72 days. Shriram Finance noted, "The fleet occupancy levels have also started rising with the Kolkata-Guwahati-Kolkata route seeing a sharp 3.9% increase in trip rentals."
Alongside these trends, the prices of used commercial vehicles saw significant gains ranging from 5% to as high as 47% in July. In contrast, the average selling prices for popular passenger vehicles dropped sharply. The prices for two-wheelers remained steady during the same period.
Used Commercial Vehicles (UCVs) showed noteworthy year-on-year growth across all weight categories. The 2-3.5-ton 4-wheeler UCVs saw prices increase by as much as 47%, followed by a 36% rise in the 1.5-2-ton category.
"With Kharif harvest around the corner and copious water stored in reservoirs due to good monsoon rains, rural activity will gain momentum in the coming months. Manufacturers too are ramping up supplies to commercial hubs in anticipation of higher festive offtake across product categories," YS Chakravarti, MD and CEO, Shriram Finance, said.
Looking ahead to the festival season from Dussehra to Dhanteras (D2D), two-wheeler sales are projected to be in the region of 54 lakh to 55 lakh units, marking an increase from nearly 45 lakh units last year, according to Chakravarti.
In terms of new vehicle sales, July saw an upward trend fueled by market discounts re-entering after a long hiatus. Car sales recorded an 11% month-on-month rise and a 9% year-on-year increase. Two-wheeler sales also saw a 5% month-on-month rise and a 17% year-on-year increase.
Commercial vehicle sales mirrored this growth with significant month-on-month and year-on-year increases. The e-rickshaw with cart segment registered an 87% year-on-year growth, and commercial tractors saw a 19% month-on-month increase.
Finally, FASTag toll collections in July remained flat compared to June 2024, according to the report by Shriram Finance.
Overall, the transportation and vehicle sales sectors showed positive movements in July, driven by seasonal demand and strategic manufacturer activities in anticipation of a busy festival period and a fruitful harvest season.
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