Passenger Vehicle and Farm Equipment sectors are on growth path while CV division continues to struggle
Mahindra & Mahindra’s passenger vehicle sales has started showing signs of recovery as the automaker managed to overtake Kia in terms of monthly sales in regain the 4th spot in January 2021. With next generation models lined up for launch later this year, Mahindra has ample reasons to be excited about 2021.
Mahindra sales – January 2021
In January 2021, Mahindra managed to dispatch 20,634 units of passenger vehicles in the domestic market. This tally, which represented a YoY growth of 4% was good enough to scale back a position up the ladder for the month.
Speaking about the performance of the passenger vehicle division, Veejay Nakra, CEO of Mahindra’s Automotive Division, said that the company has been witnessing increase in bookings but the short supply of micro-processor semiconductors continues to be a challenge to ensure smooth production operation.
It is to be noted that the newly launched Mahindra Thar is being sent to the dealerships without the touchscreen infotainment system’s head-unit (to be installed later at the dealership level) due to supply chain constraints. Mahindra exported a total of 2,286 vehicles last month at a YoY growth of 30%.
Commercial vehicle sales
The commercial vehicle division continues to struggle as recovery from lockdown is proving tricky for the logistic sector. The sales of sub-2T LCVs witnessed a YoY slide of 78% in Jan 2021 with just 991 units sold. At, 11,846 units, Mahindra’s 2T to 3.5T LCV portfolio posted a YoY decline of 32%.
Only 551 units of 3.5T+ and MHCVs were sold last month at a decline of 46%. Despite a strong performance by Mahindra’s electric Treo auto rickshaw, the company’s three-wheeler sales saw a degrowth of 65% at 2,841 units.
Farm Equipment sector
The Farm Equipment division posted impressive overall growth rate of 50% backed by sales of 34,778 units. Both domestic and export operations registered promising growth. Expansion of Rabi acreage, high level of water at reservoirs across the country and increased liquidity at farmers’ disposal are cited as the key growth drivers for tractor sales. The company is bullish about its prospects in the coming months as well.
Despite having an SUV-dominated product portfolio, Mahindra has been struggling to stay at the forefront of our passenger vehicle market. The new Thar provided a welcome impetus but a great deal of Mahindra’s recovery will be shouldered by the upcoming next generation XUV500 and Scorpio.
The 2021 Mahindra XUV500 which is slated to go on sale in the coming months is set to bring significant improvements to the table. The prototypes revealed that the new gen mid-premium crossover will receive an S-Class style single-piece display, radar-based driver assistance systems and many more.
The 2021 Mahindra Scorpio too will emerge as a vastly improved product. It will continue to be underpinned by a ladder frame chassis but one can expect a fresh design inside out.