Mahindra PV sales up 8% amid chip crunch, tractors drop 17% in November

Firm says demand remains strong across product portfolio; momentum in exports continues with 90% growth

Passenger Vehicle sales at Mahindra & Mahindra rose 8 per cent year-on-year in November, even as production remained affected due to the chip shortage, the company said in a statement on Wednesday. The maker of Scorpio and Thar models sold 19,384 units during the month against 17,971 units in the same month last year.

“The demand remains strong across our product portfolio of SUVs, pickups, and small commercial vehicles. Momentum in exports continues with a 90 per cent growth. The issues around semiconductor related parts continue to remain a challenge for the industry. We are monitoring the situation closely and taking appropriate steps,” said Veejay Nakra, chief executive officer, automotive division, M&M.

Company’s tractor sales during the month dropped 17 per cent to 26,094 units over the same month last year. Hemant Sikka, president - farm equipment sector, attributed it to “high base of last year and incessant rains in some states.” Rural sentiments continue to remain positive on account of good Rabi sowing and high reservoir levels. “Escalation in procurement for Kharif crop will bring steady cash flows, which is expected to boost tractor demand going forward,” said Sikka.