Mahindra has revealed sales report for April 2019 showing off subdued sales both in terms of passenger and commercial vehicles; and in terms of domestic sales and exports.
Total sales, which include domestic sales and exports fell 9 percent in the past month to 43,721 units from 48,097 units sold in April 2018. Domestic sales went down 8 percent from 45,217 units sold in April 2018 to 41,603 units sold in the past month, primarily due to the ongoing general elections and an overall subdued purchase sentiment in the country.
Exports also dipped 26 percent to just 2,118 units in April 2019 as compared to 2,880 units exported in April 2018 while a decline was felt throughout the passenger and commercial vehicle segments as well.
The passenger vehicle segment, which comprises cars, vans and utility vehicles saw sales dip 9 percent from 21,927 units sold in April 2018 to 19,966 units sold in the past month while in the commercial vehicle segment, that consist of LCVs and MHCVs, sales dipped 9 percent from 18,963 units sold in April 2018 to 17,321 units sold in the past month. Among the vehicles in this segment, it was the Medium and Heavy CV segment that was the most affected as sales dipped 48 percent from 904 units sold in April 2018 to 474 units sold last month.
The Mahindra Farm Equipment Sector has also noted a decline in domestic sales by 8 percent. Tractor sales also came down to 27,495 units as against sales of 29,884 units for the same period last year. Exports which stood at 1,057 units in April 2018 dipped to 1,041 units in the past month bringing total sales in this segment down 8 percent to 30,925 units in April 2019 as against sales of 28,552 units in the same month of the previous year.
Following election results later this month and with predictions of normal rainfall, the company expects to see a revival in sales across all segments.
Rajan Wadhera, President, Automotive Sector, M&M Ltd. said, “The ongoing elections has subdued the purchase sentiment during April. This, according to us, is a temporary phenomenon. We believe, following the elections the auto industry will see a revival in consumer demand. Supported by a normal monsoon, we are confident of seeing higher sales in FY20.”
Rajesh Jejurikar, President – Farm Equipment Sector, Mahindra & Mahindra Ltd. said, “We have sold 27,495 tractors in the domestic market during April 2019. We expect that the prediction of a normal southwest monsoon will bring positive sentiment and boost tractor demand. In the exports market, we have sold 1,057 tractors, a growth of 2% over April 2018.”