Mahindra & Mahindra reports 7% fall in PV sales in August; exports surge

Mahindra & Mahindra’s passenger vehicles segment, which manufactures and markets utility vehicles, cars and vans, has sold a total of 14,198 units in August 2015, down 7% (August 2014 : 15,321).

 These sales comprise 891 cars and vans (-37% YoY) and 13,307 utility vehicles (-4% YoY). The company, which has a predominantly diesel-engined vehicle portfolio, is feeling the pressure of stagnating sales from rural India and also the narrowing price differential between petrol and diesel.

However, rising exports for the company and fresh launches lined up in the coming days are likely to aid its sales performance in the coming months.

The automaker’s exports rose a whopping 73% in August to 3,512 units.

Commenting on the company’s sales performance in the month Pravin Shah, president and chief executive (Automotive) at M&M said: “While currently we are witnessing fragmented recovery in auto sales, we are hopeful that the upcoming festive season will provide a much needed fillip to the auto industry. Overall we have had a positive month and the launch of new models is expected to further improve overall performance.”

The automaker saw growth in the Medium and Heavy Commercial Vehicles segment and sold 341 units, up 21% from a year ago.

Despite weak demand in the overall light commercial vehicles segment, M&M managed to gain market share and sales rose. LCV sales rose 4.2% in the month to 12,628 units. As a result the overall CV sales rose 5% to 13,023 units in August. However, total domestic sales were down 3% 32,122 units in the month.

The automaker recently announced plans to invest Rs 700 cr in its commercial vehicles division to develop new product platforms including a host of engineering requirements involving new powertrains, chassis, drivelines, cabins and other areas. It will also launch a new SUV named the TUV300 on September 10.