M&M auto sector sells 17,447 vehicles in May

Mahindra & Mahindra (M&M) announced that its overall auto sales (passenger vehicles+commercial vehicles+exports) for the month of May 2021 stood at 17,447 vehicles.

Sequentially, the company's total auto sales declined 52.1% in May 2021 from 36,437 units sold in April 2021.

The passenger vehicles segment (which includes UVs, cars and vans) sold 8,004 vehicles in May 2021, up 107% YoY.

Total exports for May 2021 zoomed 300% to 1,935 units from 484 units in May 2020.

Veejay Nakra, CEO of automotive division of M&M said, We are seeing a strong growth momentum for our entire product portfolio. The Thar is clocking robust bookings, despite extended waiting periods. XUV300 has been a tremendous success and continues to see strong demand. Our power brands (Scorpio and Bolero) continue to do well. With the cases coming down and gradual opening up of markets, we foresee strong demand rebound. We are working closely with our supplier partners to manage supply chain issues and meet the market demand.

Meanwhile, M&M's total tractor sales (domestic+exports) declined 1% to 24,184 units in May 2021 as against 24,341 units in the same period last year.

The company's total tractor sales have contracted 12.1% last month from 27,523 units sold in April 2021.

Domestic tractor sales in May 2021 were at 22,843 units, down 5% over 24,017 units sold during May 2020. Tractor exports rose 314% year on year to 1341 units in May 2021 over May 2020.

Commenting on the performance, Hemant Sikka, president - Farm Equipment Sector, Mahindra & Mahindra said, We have sold 22,843 tractors in the domestic market during May 2021. In May, COVID spread in rural markets led to stringent lockdowns, leading to deferment of tractor purchase and limited operations at dealerships. While state specific lockdowns and localized restrictions continue, it is heartening to see the Covid cases reducing sharply. This is leading to sharp improvement in farmer sentiments and green shoots of recovery are visible, especially since the last week, as farmers start preparing their land for upcoming Kharif crop season. A bumper Rabi harvest, record procurement, food prices holding up, gradual opening up of Mandis and expectations of a normal monsoon will pave the way for growth in the upcoming season. In the exports market, we have sold 1341 tractors with a growth of 314% over last year.

M&M's business is diversified across farm equipment, auto and automotive components, real estate, hospitality, information technology, defence and aerospace and financial services.

M&M reported a net profit of Rs 162.54 crore in Q4 FY21 as against net loss of Rs 3255.02 crore in Q4 FY20. Net revenue from operations increased by 48.1% year-on-year (YoY) to Rs 13,338.15 crore during the quarter.

Shares of M&M were up 0.22% at Rs 809.70 on BSE.

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