Mahindra SUV, MPV sales down by 15 percent in July 2019
First double digit decline reported by Mahindra in recent months.
Mahindra has revealed their sales report for the month of July 2019. It may be seen that the company has experienced de-growth across all categories except in the LCV in the above 3.5 tonne segment while exports were also higher by 3 percent.
Sales of passenger vehicles which included utility vehicles, cars and vans dipped 15 percent in July 2019. These sales stood at 16,831 units in the past month as against sales of 19,781 units in the same period of the previous year. Taking into account year to date sales in this segment, sales dipped 5 percent to 76,231 units as against 80,560 units in the year ago period.
In the utility vehicle segment, sales in the past month dipped 10 percent to 16,003 units as against 17,879 units sold in July 2018. Year to date sales were also in the negative by 3 percent to 72,098 units as compared to sales of 73,953 units in the same period of 2018.
In the cars and vans segment, sales dipped as much as 56 percent in the past month with just 828 units sold as against 1,902 units sold in July 2018. Year to date sales in this segment also fell 37 percent to 4,133 units as compared to 6,607 units sold in the same period of 2018.
Taking into account sales of commercial vehicles, the company sold 15,969 units in July 2019 as compared to 19,284 units sold in July 2018, a de-growth of 17 percent. Overall year to date sales in this segment also fell 11 percent to 67,563 units in the 2019 period as compared to 76,224 units sold in the 2018 period.
Veejay Ram Nakra, Chief of Sales and Marketing, Automotive Division, M&M Ltd. said, “The headwinds faced by the automotive industry continue as a result of subdued consumer sentiment, triggered by various factors. The industry needs stimuli to help revive consumer demand and conversions. We hope that the overall buying sentiment will improve in the run-up to the festive season and with the monsoon turning out to be better than initially anticipated.”
While the company reported de-growth of 16 percent in the LCV segment in the sub 3.5 tonne capacities to 14,874 units in July 2019 as against sales of 17,785 units in July 2018, sales in the above 3.5 tonne capacity increased 7 percent to 678 units in the past month as against sales of 633 units in the same month of the previous year. Year to date sales in both segment suffered de-growth of 10 percent and 1 percent respectively.
Vehicles under the MHCV segment also dipped 52 percent in the past month to 417 units as against 866 units sold in July 2018 while year to date sales fell 45 percent to 2,233 units in 2019 period as against 4,030 units sold in the same period of the previous year.
Commenting on the performance, Rajesh Jejurikar, President – Farm Equipment Sector, Mahindra & Mahindra Ltd. said, “We have sold 19,174 tractors in the domestic market during July 2019. We hope that the spread of monsoon, government initiatives to increase rural incomes through farm & non-farm sources and an overall improvement in liquidity will spur improvement in tractor demand during the second half of the year. In the export market, we have sold 818 tractors.”