M&M’s India sales down 20.55 percent in September

Mumbai, October 1, 2013: Mahindra & Mahindra (M&M) has seen a sharp 20.55 percent sales decline in September 2013. The passenger vehicles division (UVs, Verito and Verito Vibe) sold a total of 18,916 units compared to 23,808 units in September 2012 in the domestic market. Hit by the ‘SUV tax’ after the Union Budget earlier this year and poor market sentiment, M&M, like most OEMs, is bearing the brunt of a slowdown in vehicle sales.

Its four-wheeler commercial vehicles division though posted a marginal 2 percent increase with sales of 14,709 units last month, compared to 14,417 units in September 2012. M&M also sold 6,403 three-wheelers in September 2013, compared to 6,048 units a year ago, registering growth of 6 percent.

Mahindra Trucks and Buses Ltd continues to feel the heat of poor CV sales in the country. The M&HCV maker sold 546 units in September 2013 compared to 990 units a year ago, marking a decline of 45 percent.

Overall, M&M’s total domestic sales comprised 40,574 units compared to 45,263 units in September 2012, down 10.36 percent.

Speaking on the monthly performance, Pravin Shah, chief executive, Automotive Division, M&M, said, “While there has been a growth over August 2013, it is not to the extent that makes us comfortable especially as we approach the festive season. Factors such as increase in input and raw material costs and the depreciating rupee have not helped. To compensate to some extent, we have taken a price increase effective today. The auto industry is definitely in need of a trigger in terms of a stimulus to boost consumer sentiments leading to a turnaround in the sector as well as a revival of the economy in general.”

On September 27, M&M had announced an increase in the prices of its passenger as well as commercial vehicles by up to 2 percent. This increase would be in the range of Rs 6,000 to Rs 20,000 depending on the model and effective from October 1, 2013. The increase, as has been cited by most other OEMs which have raised prices, is primarily due to higher input costs, devaluation of the rupee and increase in some raw material costs.