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M&M July total sales drop 36% YoY; domestic tractor sales jump 28%

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Mahindra & Mahindra (M&M) reported 36% decline in total automobile sales to 25,678 units in July 2020 from 40,142 units in July 2019.

Sequentially, the total auto sales have jumped 32.6% as compared to 19,358 units sold in June 2020.

While total domestic sales declined 35% year-on-year (YoY) to 24,211 units, total exports fell 45% YoY to 1,467 units in July 2020.

In the passenger vehicles segment (which includes utility vehicles, cars and vans), M&M sold 11,025 vehicles in July 2020, compared to 16,831 vehicles in July 2019. In the commercial vehicles segment, the company sold 13,103 vehicles in July 2020, as against 15,969 vehicles in July 2019.

Commenting on the performance, Veejay Nakra, chief executive officer, automotive division, M&M, said, At Mahindra, we are happy to see a growing trend in our overall vehicle sales, buoyed by the continuing revival in demand, primarily in rural and semi urban India. It is encouraging to see that the enquiry and booking levels in July are significantly higher compared to June, both for utility vehicles and small commercial vehicles. As we ramp up production, the biggest challenge is on the supply side and working around these challenges is our top priority.

Meanwhile, M&M's total tractor sales during July 2020 were at 25,402 units, up by 27% from 19,992 units sold in the same period last year.

Sequentially, however, the tractor sales have declined by 30.5% as compared with 36,544 units in June 2020.

Domestic tractor sales rose 28% to 24,463 units while tractor exports increased by 15% to 939 units in July 2020 over July 2019.

Hemant Sikka, president - farm equipment sector, M&M, said, "We have sold 24,463 tractors in the domestic market during July 2020, a growth of 28% over last year. These are our highest ever July sales. The strong demand momentum continued, aided by positive sentiments due to good cash flows to farmers, higher Kharif sowing, a timely and normal monsoon cumulatively across June & July and continued higher rural spending by the Government. Localized lockdowns in certain states and COVID related impact on specific suppliers led to supply side challenges during the month. It is expected that the sentiments are likely to remain buoyant translating into robust tractor demand in the coming months."

The automaker reported a net loss of Rs 3,255 crore in Q4 March 2020 compared with net profit of Rs 969 crore in Q4 March 2019. Revenues fell 35% to Rs 9,005 crore in the March quarter from Rs 13,808 crore reported in the corresponding period last fiscal.

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 stock rose 1.45% to Rs 606.50 on Friday. In the past one month, the stock has jumped 21.41% while the S&P BSE Sensex rose 6.19% during the same period.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, August 01 2020. 14:39 IST
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