Mahindra car sales has suffered a huge decline in the month of Feb 2020 declining by 58%
Mahindra & Mahindra has released its sales results for February 2020 wherein sluggish sales were reported. The company has reported a 42 per cent decline in total vehicle sales, or 32,476 units in the past month as against 56,005 units sold in February 2019. Passenger vehicle sales stood at 10,938 units, down by 58 per cent as against 26,109 units sold in February 2019. In the past month, utility vehicle sales dipped by 56 per cent to 10,675 units as against 24,349 units sold in the same month, the previous year.
In the commercial vehicle segment as well, sales were lower in the past month when compared to sales in the same month of 2019. Commercial vehicle sales stood at 15,856 units which are down by 25 per cent in comparison to sales of 21,154 units in February 2019.
|Cars* + Vans||263||1760||-85%|
|LCV < 3.5T||14991||19647||-24%|
|LCV > 3.5T||429||821||-48%|
|Total Domestic Sales||30637||52915||-42%|
|Total Sales (Domestic + Export)||32476||56005||-42%|
|Farm Sector||Feb-20||Feb-19||% Change|
In the medium and heavy commercial vehicle segment, Mahindra & Mahindra sold 436 units in the past month. This took the total domestic sales to 30,637 units, down by 42 per cent compared to 52,915 units sold in February 2019. On the other hand, exports were down by 40 per cent to 1,839 units as compared to 3,090 units sold in the same month of the previous year.
Not only did monthly sales suffer, but yearly sales were also in the negative in every segment. Passenger vehicle sales dipped by 19 per cent to 1,83,594 units compared to 2,27,055 units in the same period back in 2019. Sales of commercial vehicles dipped by 12 per cent and total domestic sales were down by 13 per cent. Exports went down by 24 per cent.
In the Farm Equipment sector, Mahindra noted significant growth of 21 per cent in February 2020. This positive growth was for domestic sales while exports remained in the negative. Total farm equipment sales in domestic markets stood at 21,877 units in February 2020. This is up from 18,105 units sold in the same month of the previous year. Exports dipped by 22 per cent to 684 units from 873 units exported in February 2019, thus taking total farm equipment sales up by 19 per cent to 22,561 units in the past month, from 18,978 units sold in February 2019.
In the period of April to February 2020, sales of Mahindra Tractors dipped by 7 per cent in domestic markets and 21 per cent in exports, to 2,78,483 units and 9,819 units respectively. This is against 2,98,296 units and 12,454 units sold in the same period of the previous year.
The company is somewhat optimistic about the tractor demand increasing in the months ahead with better Rabi output and current crop prices. Growth is also expected due to an increase in rural and agricultural spending as announced by the Government of India. To boost car sales, Mahindra has plans to launch BS6 Scorpio, XUV500, Bolero in the coming weeks.