Mahindra & Mahindra’s auto sales in the domestic market dropped 13 per cent year-on-year (YoY) even as tractor sales advanced by 69 per cent in August, the company said in a stock exchange notification.
The company dispatched 29,257 units during the month compared to 33,564 units last year. The volumes were dragged down by the medium and heavy commercial vehicles and three wheelers which fell 71 per cent and 94 per cent respectively.
Mahindra’s passenger vehicle segment that includes the utility vehicles and passenger cars was a saving grace and helped offset some decline in the overall auto sales. It saw dispatches grow 1 per cent YoY to 13,651 units.
A month-on-month recovery in demand and production and low base of last year aided the recovery. “We have been able to meet the uplift in demand by managing the supply chain challenges and going forward, will continue our focus on it,” said Veejay Nakra, chief executive officer, automotive division.
Meanwhile, Mahindra’s tractor sales continued the strong volume march. It rose to 23,503 units during the month as compared to 13,871 units in the previous year. This is the record sales for the company came on back of positive sentiment, increase in the Kharif sowing area that indicates bumper harvest, a good monsoon and a base effect, said Hemant Sikka, president, farm equipment sector at Mahindra and Mahindra.
“We expect rural sentiments to remain positive and translate into robust tractor demand as we move into the festive period,” said Sikka. Company’s exports during the month rose 1 per cent to 955 units over the last year.
At the time of filing the story, Mahindra’s shares were trading at Rs 614 per share, up 1.24 per cent.