Mahindra & Mahindra (M&M), with its diesel-engined stable of SUVs, has taken a hit in sales both in March 2015 and for the fiscal 2014-15, following deregulation of diesel prices.
The company’s passenger vehicles division, which manufactures the UVs and the Verito sedan and Verito Vibe hatchback, sold a total of 21,020 units in March 2015, down 10.25 percent (March 2014 : 23,433). Cumulative sales for the fiscal year were 210,021 units, down 8.35 percent year on year (2013-14 : 229,155).
M&M though is hopeful of a better performance in the new fiscal 2015-16. Pravin Shah, chief executive, Automotive Division, M&M, said, “With factors such as expectation of normal monsoon, settling down of petrol and diesel prices and the likely softening of interest rates, we expect the auto industry to perform better in FY2016.”
Soon after M&M’s results were announced, oil marketing companies announced a cut in diesel price by Rs 1.21 a litre and by 0.49 paise a litre for petrol, in New Delhi.