The Shriram Mobility findings offer a detailed snapshot of India’s transportation and logistics sector following the festive season, writes Ashish Bhatia.
Covering vehicle sales, fleet utilisation, fuel consumption, and infrastructure trends, the Shriram Mobility report highlights how festive dynamics influenced the industry and offers insights into the shifting post-festival landscape. The data paints a picture of seasonal re calibration, with gains in passenger mobility tempered by challenges in logistics.
Post-festival impact on fleet utilisation
Fleet utilisation levels dropped to 80 per cent in October due to reduced post-Diwali logistics demand. Historically, fleet occupancy peaks during festive months with increased movement of goods and consumer products. However, after the surge, demand cools down, impacting truck rental rates across major routes.
Analysis
While rentals on most routes experienced marginal declines, certain corridors like Kolkata-Guwahati observed modest increases (+0.7 per cent) due to unique regional demand. These changes reflect typical post-festival normalisation.
Vehicle Sales: A Festive Boost
The festive period significantly boosted vehicle sales, especially in the passenger and two-wheeler segments. Aggressive discounts and promotional offers by manufacturers have been pinpointed as key drivers, alongside robust rural demand supported by favourable monsoons.
Key observations
In the case of commercial vehicles, segments like goods carriers and three-wheelers benefited, growing by 32 per cent and 39 per cent MoM, despite ongoing cost pressures for truckers. Earth-moving equipment, with a 75 per cent MoM increase, infrastructure-related segments also reflected growth tied to increased construction activity during the festive season.
Electric Vehicles: Slow recovery despite festive push
Electric Vehicle (EV) sales demonstrated modest growth in October 2024, with motor cars showing a 28 per cent MoM increase. However, YoY trends suggest challenges remain for broader adoption, especially in electric two-wheelers.
Insights
Despite the festive boost, the electric two-wheeler market (crucial for quick commerce) declined 40 per cent YoY, highlighting lingering affordability and infrastructure issues. Growth pockets include electric three-wheelers that continue to show resilience, growing five per cent YoY, supported by demand for last-mile delivery solutions.
Fuel consumption and toll collection trends
Fuel consumption rose sharply during the festive period, driven by increased passenger and commercial movement. Diesel consumption surged 20 per cent MoM, reflecting heightened logistics activity, while petrol usage grew by eight per cent MoM, supported by personal vehicle sales.
Toll collections also reflected increased vehicular movement, growing 8.3 per cent MoM in volume and 8.8 per cent in value, underscoring the festive season’s impact on inter-state travel.
E-way Bill Trends : Festive Logistics Surge
E-way bill generations saw a notable uptick, with inter-state and intra-state movements increasing MoM in September and October 2024. This metric serves as a vital indicator of goods movement during the festive season.
The 18-19 per cent YoY growth in bill generations reflects sustained logistics expansion, with festive demand contributing to higher movement of goods.
The Shriram Mobility study highlights the multifaceted nature of India’s mobility landscape. Festive seasons provide a significant boost to passenger and two-wheeler segments, yet post-festival normalisation brings challenges for logistics and commercial vehicle utilisation. While EV adoption shows promise, infrastructure gaps and cost concerns remain barriers to widespread growth. As India transitions into the wedding season, the industry’s performance is expected to remain positive, driven by rural confidence, infrastructure activity, and sustained policy support. By analysing such comprehensive data, stakeholders can better understand and adapt to evolving market dynamics.
