Mahindra & Mahindra March sales down 12%

Automaker Mahindra & Mahindra today reported a 12.44% decline in total sales at 45,212 units in March.

It had sold 51,636 units in the same month last year, the company said in a statement today.

In domestic market, M&M's sales were down by 15% to 41,193 units last month as against 48,490 units a year earlier.

Exports were up 28% at 4,019 units as compared to 3,146 units in the same period a year earlier.

Sales of passenger vehicles, including Scorpio, XUV 500, Xylo, Bolero and Verito stood at 21,030 units compared with 23,433 units in March 2014, down 10.25%.

Four-wheeler commercial vehicle sales were down by 19% to 14,279 units last month against 17,649 units in year-ago period, M&M said.

Commenting on the outlook, M&M Chief Executive (Automotive Division) Pravin Shah 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."

As a lead indicator, the company has already seen the impact in segments such as heavy commercial vehicles, which is on the recovery path, Shah added.

For the fiscal 2014-15, the company's total sales stood at 4,64,848 units as against 5,07,176 units in the previous fiscal, down 8%.

M&M's domestic sales in FY15 stood at 4,34,652 units as compared to 4,77,517 units in the previous year, down 9%, the company added.

Exports during the year were up 1.82% at 30,196 units as compared to 29,656 units in the previous fiscal.

The company said it is withdrawing from Brazil after a sluggish economy, changes in regulation and a depreciating currency hurt sales.

"Where we don't see mid-to-long-term prospects, there is no point. We call spade a spade and get out of that," said Pravin Shah, chief executive of Mahindra's automotive division and international operations, adding that Mahindra will continue to sell vehicles in the neighbouring markets of Chile, Peru and Paraguay.