With car manufacturing plants shut since 25th March 2020 across India, month of April saw 0 car sales across India
Just like other automakers in the country, Mahindra & Mahindra has registered 0 domestic sales. In April last year, the company had sold a total of 41,603 vehicles in the domestic market. The company did register exports. As compared to 2,118 units exported in April last year, the numbers are down to 733 units in April 2020. This translates into YoY loss of -65%.
Things are expected to improve only marginally in May, as the lockdown has been extended for two more weeks after May 3. However, this time, the lockdown will be implemented in a graded manner.
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Areas have been tagged as Red, Orange and Green zones and lockdown rules will be applied accordingly. Red zones will continue to have strict lockdown measures whereas some restrictions will be removed for Orange zones. Green zones will have the least restrictions.
Mahindra Sales Report – April 2020
|Cars* + Vans||0||1,118||-1,118||-100%|
|LCV < 3.5T||0||16,284||-16,284||-100%|
|LCV > 3.5T||0||563||-563||-100%|
|Total Domestic Sales||0||41,603||-41,603||-100%|
|Total Sales (Domestic + Export)||733||43,721||-42,988||-98%|
Mahindra exports its vehicles to several countries across the globe. The company has subsidiaries in key markets such as China, Europe, USA, and South Africa. Some of Mahindra’s top exported models include KUV100, Scorpio, XUV500, XUV300, Bolero, Thar and E20.
Mahindra is currently working with its suppliers and dealers to achieve normal operations after the lockdown is lifted. That may take a couple of weeks, as the entire ecosystem needs to be up and running.
With the country now divided into Red, Orange and Green zones, it is possible that some production units of the company or suppliers may still have to remain shut. The company is also taking steps to protect its employees once production begins. There are likely to be strict rules regarding social distancing, wearing of masks, temperature checks and sanitization.
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Just like other auto companies, Mahindra has launched a series of initiatives to support the fight against coronavirus. Key among them is the manufacturing of ventilators that are a must for saving lives of critically ill Covid-19 patients. Mahindra’s engineering department is credited with developing a low-cost ventilator that costs just Rs 7,500. In comparison, the standard units available in the market are priced between Rs 5-10 lakh. Mahindra is leveraging is expertise and production facilities to manufacture the ventilators.
In another initiative, Mahindra has allowed use of its holiday resorts as temporary care facilities. This will be useful, as the existing healthcare infrastructure would be inadequate in handling the rising number of Covid-19 patients. Group Chairman Anand Mahindra has also done his part by donating his entire salary to Covid-19 fund. He has urged his colleagues to do the same.