Truck rentals dip marginally, used truck prices jump in June: Report

Rentals in the majority of the key truck routes dropped marginally or remained flat in June versus May 2024, said Shriram Mobility Bulletin, a monthly logistics research report by Shriram Finance, with experts calling it a temporary blip. 

On the other hand, average price of used commercial vehicles saw a considerable rise across categories in June with 31 to 36-ton category seeing a sharp 43 per cent jump and 1.5 to 2-ton posting a 38 per cent jump compared to June 2023, posting the maximum rise. 

During the month, Mumbai-Kolkata and Bengaluru-Mumbai saw a notable decline of 2.6 per cent and 1.6 per cent respectively. On the other hand, Kolkata-Guwahati rental increased 4 per cent on a monthly basis. Similarly, the Bengaluru-Kolkata route also saw a 2.1 per cent increase during the month. 

 

Other routes that saw a decline in rentals during the month include Delhi-Mumbai at 0.6 per cent, Delhi-Chennai at 1 per cent, Delhi-Kolkata at 1.4 per cent, Delhi-Bengaluru at 1 per cent, and Guwahati-Mumbai route saw 0.4 per cent dip. 

“With the new government in place and with 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, vehicle sales appears temporary,” said Y S Chakravarti, managing director and chief executive officer of Shriram Finance.

In June 2024, goods carrier sales dipped 7 per cent to 53,810 units, compared to 57,781 units during the same month last year. On a monthly basis, sales were down by 15 per cent.  

Passenger vehicle sales experienced a notable decline, falling by 6.77 per cent year-on-year (Y-o-Y) and 7.18 per cent month-on-month (MoM). Car sales declined by 8 per cent to 2,56,468 units, compared to the same month last year. On the other hand, motorcycle sales were seen up by 5 per cent to 13,31,558 units during the month. 

“Vehicle sales dropped significantly in most of the categories in June. Passenger vehicles saw a notable decline and inventory levels reached all-time high, ranging from 62 to 67 days. Many auto dealers complained of stress in the system,” the report said.

Rural vehicle registrations dropped while urban RTOs held on to May levels. 

Used truck rates increased in 2 to 3.5 ton by 22 per cent, 3.5 to 7.5 ton by 21 per cent, 7.5-16 ton by 7 per cent, 16-19 ton by 9 per cent, 25-28.5 ton by 6 per cent, and 37-43.5 tons by 18 per cent.