Survey and heatwave hit logistics sector in June: report

Heatwave, delayed monsoon, elections and high interest rates have led to tensions in rural hinterland, impacting the logistics sector in June 2024, according to data from Shriram Finance Ltd.

Giving details about the current state of the automotive and logistics sector, Shriram Finance in its July 2024 bulletin stated that passenger vehicle sales witnessed a significant decline of 6.77% YoY. Auto sales declined by 9%.

Truck rentals fell by 2.6% on the Mumbai-Kolkata-Mumbai route but rose by 4.1% on the Kolkata-Guwahati-Kolkata route.

Sales of used commercial vehicles increased year-on-year, with a 7% increase for vehicles with a payload of 7.5 to 16 tonnes and a 43% increase for vehicles with a payload of 31 to 36 tonnes.

FASTag toll collections increased year-on-year by 2% in volume and 7% in value.

The slowdown in all sectors, including road transport and vehicle sales, appears to be temporary given the new government taking office and the expected intensification of monsoon rains, said Managing Director and CEO YS Chakravarti.

Businesses hope that the government’s actions will help elevate economic activity to a higher level, he added.

Shriram Finance also believes that the ongoing kharif season could boost sales of farm tractors, trailers and commercial tractors.