M&M's November sales decline 22%

Pravin Shah, President & Cheif Executive (Automotive), M&M said, “While we expected an improved auto industry performance on the back of the festive season and other positive parameters such as rural demand and interest rates softening, the sudden announcement of demonetisation has brought in an immediate disruption and uncertainty.”

Domestic sales fell 24% year-on-year (YOY) basis, at 29,814 units. However, exports grew by 22%, the company said. Photo: Official Website

Mahindra & Mahindra sold 32,499 vehicles in November 2016, a decline of 21.85% from 41,590 units sold in the same month of the previous year.

Pravin Shah, President & Cheif Executive (Automotive), M&M said, “While we expected an improved auto industry performance on the back of the festive season and other positive parameters such as rural demand and interest rates softening, the sudden announcement of demonetisation has brought in an immediate disruption and uncertainty.”

Domestic sales fell 24% year-on-year (YOY) basis, at 29,814 units. However, exports grew by 22%, the company said.

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Passenger vehicle segment tumbled 33%, at 13,217 units against 19,662 units in November 2015. The company said its that utility vehicle segment also saw a decline of 34% with sales of 12,416 units against 18,686 units a year ago same month.

He added, “While it is a good and welcome step in the mid to long term, this has dampened overall sentiments leading to postponed buying thereby resulting in a major drop in volumes during November. This is significant as the automotive industry had just started experiencing stability post a long and tough period of uncertainty.”

Medium and heavy commercial vehicle (MHCV) and three-wheelers segment declined by 22% and 20%, selling 356 units and 3953 units, respectively.

Commercial vehicle (CV) segment was the least affected. The company sold 12,644 units, down by 15% as against 14,801 units in November 2015.

Light commercial vehicle greater than 3.5T registered growth of 35% with sales of 451 units.

Year-to-date, M&M has sold 3,32,214 units of vehicle, a rise of 5% compared to 3,15,674 units in the similar period of the previous year.

Lastly, Shah added, “We at Mahindra are working with our network partners and customers by extending necessary help and support to minimise the challenges currently being experienced.”

At 2.26 pm, shares of Mahindra & Mahindra was trading at Rs 1172.05 per share, down by 14 points or 1.17%.

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