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As the nation entered Unlock 3.0, the government has decided to allow manufacturers as well as other companies to resume the pace of their businesses. Often we come across reports analysing the purchase index of goods and services claiming that the economy which came at a halt due to the pandemic, is slowly picking up. So, let’s find out whether the utilization of carrier vehicles in India has recovered during Unlock 3.0 or not.
Likewise, there is a key indicator related to the truck business using which we will analyse the current state of Indian transporters. We are talking about the e-way bill. This bill refers to a permit which is mandatory for transporters shipping goods worth more than Rs 50,000 anywhere in India.
A detailed analysis by the Goods and Service Network on e-way bills reveals that the collections for the month of July were about 7.3% less when compared to last year. This can be seen as an improvement when compared to the year-on-year collection data of June 2020 when a contraction of 12.7% has been observed.
Here is a graph showing the trend of e-way bill collection from March to July 2020:
Key trend observations when compared to truck utilization of the last year:
- When compared to last year, the collection of e-way bills in India has seen a clear dip due to the coronavirus pandemic.
- Around a 20-25% drop in e-way bill collection in March.
- In terms of utilization, April has clearly been the toughest month of 2020 for truckers in India. We observe that there was a huge drop in the month; 79.8% and 88.4% in Intrastate and Interstate respectively.
- The demand for trucks slowly began to increase in May and so did the e-way bill collection. When compared to last year, there is a clear dip of 46.1% and 62.6% in Intrastate and Interstate hauls.
- In June, the dip was still there but the collection of e-way bills increased. And there was a slight drop of 18 to 20%.
- When comparing the collection of July 2020 with July 2019, we observe a drop of 7.3% in Intrastate and about 12% in Interstate hauls.
We hope that this information will prove to be useful for truck businessmen across the country. Please visit our ‘Help Portal’ for more logistics-related information and updates.