In a noteworthy development, Mahindra and Mahindra Limited (M&M) have reported a robust growth of 19% in their August auto sales, reaching a total of 70,350 vehicles, compared to 59,000 units in the same month the previous year. This impressive performance has pushed M&M's stock price up by nearly 2% to Rs 1600 on September 1.
The surge in domestic passenger vehicle sales played a significant role in this achievement, with M&M reporting a 25% increase in August sales, reaching 37,270 units compared to 29,852 units in the corresponding period of the previous year.
In the Utility Vehicles segment, M&M achieved a milestone by selling its highest-ever SUVs—37,270 vehicles in the domestic market and a total of 38,164 vehicles, including exports.
The company's commercial vehicle sales within the domestic market stood at 23,613 units.
Veejay Nakra, President of the automotive division, commented on the strong demand for key SUV brands but also noted their vigilance regarding the availability of semi-conductors and select parts to ensure a smooth and sustained scale-up.
However, the overall exports in August 2023 experienced a 17% decline, totaling 2,423 units compared to 2,912 units in August 2022.
Turning to the farm equipment sector, M&M saw a modest 1% increase in total tractor sales for August, with 21,676 units sold compared to 21,520 units in August of the previous year.
Hemant Sikka, President of the Farm Equipment Sector, highlighted that despite a 9% monsoon deficit at the end of August, Kharif sowing remained on track and had improved compared to the previous year for all key crops except pulses. With favorable terms of trade for farmers and the upcoming festive season, M&M anticipates an increase in tractor demand in the coming months.
Domestic tractor sales for the month increased by 3% to 20,647 units compared to 20,138 units year-on-year, while tractor exports experienced a 26% decline year-on-year, totaling 1,029 units.
The surge in domestic passenger vehicle sales played a significant role in this achievement, with M&M reporting a 25% increase in August sales, reaching 37,270 units compared to 29,852 units in the corresponding period of the previous year.
In the Utility Vehicles segment, M&M achieved a milestone by selling its highest-ever SUVs—37,270 vehicles in the domestic market and a total of 38,164 vehicles, including exports.
The company's commercial vehicle sales within the domestic market stood at 23,613 units.
Veejay Nakra, President of the automotive division, commented on the strong demand for key SUV brands but also noted their vigilance regarding the availability of semi-conductors and select parts to ensure a smooth and sustained scale-up.
However, the overall exports in August 2023 experienced a 17% decline, totaling 2,423 units compared to 2,912 units in August 2022.
Turning to the farm equipment sector, M&M saw a modest 1% increase in total tractor sales for August, with 21,676 units sold compared to 21,520 units in August of the previous year.
Hemant Sikka, President of the Farm Equipment Sector, highlighted that despite a 9% monsoon deficit at the end of August, Kharif sowing remained on track and had improved compared to the previous year for all key crops except pulses. With favorable terms of trade for farmers and the upcoming festive season, M&M anticipates an increase in tractor demand in the coming months.
Domestic tractor sales for the month increased by 3% to 20,647 units compared to 20,138 units year-on-year, while tractor exports experienced a 26% decline year-on-year, totaling 1,029 units.
