Mahindra & Mahindra (M&M) announced that its total auto sales decline by 11.4% to 28,777 vehicles in February 2021 from 32,476 in February 2020.
Sequentially, the company's auto sales have decreased 26.5% in February 2021 from 39,149 units sold in January 2021.
In the utility vehicles (UVs) segment, Mahindra sold 15,380 vehicles in February 2021, compared to 10,675 vehicles in February 2020, registering a growth of 44%. The passenger vehicles segment (which includes UVs, cars and vans) sold 15,391 vehicles in February 2021, a growth of 41% over same period last year.
Exports for the month of February 2021 were at 1,827 vehicles, down by 1% from 1,839 vehicles sold in the same period last year.
According to Veejay Nakra, chief executive officer, automotive division, M&M, At Mahindra we have witnessed a growth of 44% in UVs for the month of February, 2021. Demand continues to remain buoyant for our range of SUVs and Pick-ups and we have a robust order pipeline. However, supply of semiconductors, as we all know, is a global issue and it is likely to continue for another 3 to 4 months. Going forward, we will continue to monitor the situation and closely work with our suppliers to minimise this supply risk."
Mahindra's Farm Equipment Sector (FES) said that its total tractor sales (domestic + exports) during February 2021 were at 28,146 units, up by 25% from 22,561 units for the same period last year.
While total domestic tractor sales increased by 24% to 27,170 units, total tractor exports increased by 43% to 976 units in February 2021 over February 2020.
Hemant Sikka, president - Farm Equipment Sector, Mahindra & Mahindra said: "We have sold 27,170 tractors in the domestic market during February 2021 with a growth of 24% over last year. Tractor demand continues to be robust with Rabi sowing at an all-time high, supported by healthy reservoir levels and higher liquidity with farmers, on account of timely and robust procurement of Kharif crops. The outlook for the industry continues to be positive given the all-time high estimates of Rabi production and strong rural cash flows. In the exports market, we have sold 976 tractors, a growth of 43% over last year."
M&M's business is diversified across farm equipment, auto and automotive components, real estate, hospitality, information technology, defence and aerospace and financial services.
The company reported 40% jump in net profit to Rs 530.86 crore on a 16% rise in revenues to Rs 14,056.54 crore in Q3 FY21 over Q3 FY20.
The scrip rose 2.82% to currently trade at Rs 827.55 on the BSE.
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