Mumbai-headquartered Mahindra & Mahindra (M&M) has increased the number of 'no-production days' to between 8-17 during the second quarter (Q2) of the ongoing fiscal year 2019-20 for its automotive sector, as part of aligning its production with sales requirements.
Earlier this year, on August 9, the company had intimated about its 'no-production days' ranging from 8-14 days at its various automotive plants and Mahindra Vehicle Manufacturers during the second quarter of FY2020. Now the company has, in a regulatory filing today, said its automotive sector plant will see no-production days ranging between 8-17 days -- an additional 3 days as compared to the disclosure made earlier, and between 1-3 days for the Farm Equipment Sector.
The company management said that it does not envisage any adverse impact on availability of vehicles in the market due to adequacy of vehicle stocks to serve the market requirements.
M&M has five plants which undertake manufacture of passenger vehicles, commercial vehicles and farm equipment.
- Kandivli (Maharashtra): 100,000 units per annum
- Nashik (Maharashtra): 220,000 units per annum
- Chakan (Maharashtra): 320,000 units per annum
- Haridwar (Uttarakhand): 100,000 units per annum
- Zaheerabad (Telangana): 100,000 units per annum
Feeling the heat of the slowdown
Like all other automakers, M&M too is feeling the heat of the ongoing slowdown. The company sold a total of 13,504 passenger vehicles (IC engine) in August 2019 (-31.58%) and 89,733 units in the April-August 2019 period (-10.28%). Only 5 EVs were sold in the five-month period.
The company's commercial vehicle sales too are down, like the rest of the CV sector. In August, it despatched 14,684 units (-27.76%) and a total of 82,247 units in April-August 2019 (-14.81%).
Its three-wheeler sales in August comprised 5,046 units (-4.59%) and 22,273 units in April-August 2019 (-6.55%). Interestingly, M&M sold a total of 327 electric three-wheelers in August 2019 and a cumulative 910 units in April-August 2019.
Mahindra Two-Wheelers sold 138 units last month (-57.14%) and a total of 324 units in the first five months of FY2020 (-84%).
With the festive season already underway, vehicle manufacturers as well as industry body SIAM have been urging the government to announce a GST cut as well as a scrappage policy. All eyes are now on the GSt Council meeting to be held exactly a week from now, on September 20, in Goa.