Mahindra's April sales up two percent

Automobile manufacturer Mahindra and Mahindra Wednesday reported a two percent rise in total sales for April at 41,432 units from 40,715 off-take in the corresponding month of 2012.

"We remain cautiously optimistic of the current situation and do hope that with the much awaited and needed reduction in interest rates announcement by the RBI (Reserve Bank of India) next week, the auto industry will look up," said Pravin Shah, chief executive, automotive division, Mahindra and Mahindra.

According to Shah, the budgetary proposal to hike by three percent the excise duty on sports utility vehicles (SUVs), which got parliament's sanction Tuesday, will be detrimental to sales.

"We are extremely disappointed that the additional three percent excise duty on SUVs has not been reversed in the Finance Bill, which would have brought about some cheer and momentum for SUV makers and provided them with a level playing field."

However, the company reported a two percent increase in its domestic sales during the month under review at 39,902 units from an off-take of 39,295 units during April 2012.

Exports of M&M, however, only rose by eight percent and stood at 1,530 units from 1,420 units in the corresponding month of 2012.