Mahindra car sales for May 2020 stood at 3,867 units while cumulative sales stood at 9,560 units for the month
Mahindra PV sales for May 2020 is reported at 3,867 units, down 81 percent from 20,608 vehicles sold in May 2019. Of this 3,745 are UV sales, and the remainder 122 units make up its electric vehicles, and segment classified as cars and vans.
Mahindra Farm Equipment has reported domestic sales at 24,017 units in May 2020, up 2 percent as against 23,539 units sold in May 2019. On the other hand, company exports dipped 72 percent to 324 units in the past month when compared to exports of 1,165 units in May 2019.
Taking total sales into account, in May 2020 domestic sales plus exports stood at 24,341 units, a 1 percent decline as against 24,704 units sold in the same month of the previous year. This increased sales in May 2020 was indeed a major achievement considering the company had sold 4,716 units in April 2020 while exports had stood at 56 units as against 1057 tractors exported in the same month in 2019, a decline of 95 percent. The extension of the lockdown had a deep impact on sales while company dealerships were open only for a few days on April.
For manufacturers, business is only just beginning to limp back to life, so the restricted numbers is testament to present market conditions in the lap of Covid-19 pandemic. As things progress, there’s no doubt that the current FY is in doldrums, and looking at the low start is nothing out of the ordinary. In April 2020, no sales was reported. So while passenger vehicle YTD FY20 sales at this time was 40,574 units, YTD FY21 stands at a mere 3,867 units.
The Indian automotive sector as a whole had been suffering lower sales for the past 15 months prior to the COVID-19 pandemic hitting the country and bringing sales to a virtual standstill. The lockdown was announced at the end of March 2020 and all production operations were put on hold. There was zero production during the month of April and most of May and company dealerships also shut shop. The auto sector in India reported zero production and sales for the first time in history. Ports were also shut and it was only now that they have been partially opened that export operations have commenced.
Following the relaxation of the lockdown, could bring about a revival in sales of tractors in India. The predictions of a good and timely monsoon coupled with robust Rabi crop production and good price realizations besides a good Kharif crop could see an increase in demand for tractors in the days ahead. It may also be noted that reservoirs are holding more water than their 10 year average due to the lockdown and this too would work in favor of the agricultural sector.
Segment leaders, Mahindra Farm Equipment is also planning to introduce a second shift to meet this increased demand with estimates that normal levels could be seen in the coming quarter. Private Banks and non-banking financial companies (NBFCs) will also pay special attention to financing of tractors considering the increased demand noted in this segment unlike that seen in the passenger car sector. Society of Indian Automobile Manufacturers (SIAM) has also predicted that automobile sales are expected to decline of 35 to 40 percent in FY21, as against tractor sales which are expected to see only a minor dip of 10% this fiscal.