Mahindra's SUV sales to dealers dip for first time in over 3 years

India's Mahindra & Mahindra reported its first sales decline over three years in August as the Scorpio SUV maker said it moderated dispatches to dealers as it awaits a government decision on lower consumption tax.

Its SUV sales fell 9 per cent last month, but are still up 15 per cent so far in the fiscal year to March 2026.

Analysts at Nomura said automotive dealers stocked up conservatively for August ahead of the key tax cut decision, so as not to hold on to higher-cost inventory. Buyers are delaying festive season purchases as they expect lower prices.

India's goods and services tax (GST) council is due to meet later this week to discuss the most significant overhaul of the tax system since its launch, after Prime Minister Narendra Modi announced the proposal last month.

Despite the drop in August, Mahindra has defied a wider industry slowdown in the world's third-largest car market, backed by strong demand for its newer SUVs and EVs.

Market leader Maruti Suzuki and rivals Hyundai India and Tata Motors are yet to report their monthly sales numbers.