Mahindra's May sales down three percent

Automobile manufacturer Mahindra and Mahindra on Monday reported a decline of three percent in its sales for May which stood at 36,706

units down from 37,869 units in the corresponding month of 2014.

"The auto industry has been showing signs of recovery and it is important that factors like an interest rate cut if considered, would accelerate growth," said Pravin Shah, chief executive of the automotive division, Mahindra and Mahindra.

The Reserve Bank of India (RBI) is scheduled to conduct its bi-monthly monetary policy review on June 2, 2015.

The apex bank will decide whether or not to cut key lending rates at the meeting on Tuesday.

"At Mahindra, we hope to see improved sentiments with higher level of economic activities and the launch of our new age XUV500 which has received a good initial response. We are also happy with a 41 percent growth in our exports during the last month," Shah said.

The company's domestic sales were down by six percent during the month under review and stood at 33,369 units from an off-take of 35,499 units during May, 2014.

Exports of M&M, however, rose exponentially by 41 percent and stood at 3,337 units being sold abroad from 2,370 units shipped out during the corresponding month of 2014.