BackMahindra & Mahindra domestic vehicle sales decline 79% in May
In the passenger vehicle category, the company sold 3,867 units last month, down 81% year-on-yearThe company exported 484 vehicles in May, down 80% from a year ago.
PremiumMUMBAI: Mahindra & Mahindra Ltd (M&M) has posted a 79% decline in its domestic vehicle sales to 9,076 units in May. The company partially resumed operations across its units and dealership network during the month.
In the passenger vehicles category, which includes utility vehicles, cars and vans, the company sold 3,867 units last month, down 81% year-on-year.
M&M sold 5,170 units in the commercial vehicle or CV segment, posting a decline of 71% yoy. In this category, vehicles with gross vehicle weight or GVW of less than 3.5 tons comprise bulk sales for M&M. It sold 5,121 units in this sub-category with the Mahindra Bolero pickup being the bestselling vehicle. The monthly volumes in this sub-segment dropped 69% yoy.
In the medium and heavy commercial vehicle or MHCV range, the company sold only 39 units in May as against 637 units in the year ago period. While this not only establishes that the M&HCV segment is worst hit during this crisis, analysts forecast the vehicle category could take a longer time to bounce back to its FY2018 growth level.
M&M’s three-wheeler business, which also takes into account the electric-three-wheelers manufactured by its subsidiary Mahindra Electric Mobility Ltd, has reported sales of only 39 units as against 4,569 units in the year-ago period.
The company exported 484 vehicles in May, down 80% from a year ago.
“Our performance during May has been muted, due to the challenges the industry is facing. We have opened 70% of our dealerships and retail sales have begun. We are seeing initial traction for our small commercial vehicles and SUV brands such as the Bolero and Scorpio," said Veejay Nakra, chief executive officer, automotive division, M&M.
As new lockdown norms are being announced the company is hopeful of demand gaining traction in the coming months, Nakra said.
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