M&M sales down 3% at Rs 45,421 units in May, exports decline 22%

Mahindra and Mahindra (M&M), a part of the USD 20.7 billion Mahindra Group, on Saturday reported 3 per cent decline in total sales at 45,421 units in May.

"The auto major had sold 46,848 units in the same month last year," M&M said in a filing to the Bombay Stock Exchange.

The domestic sales, which include sales made in subsidiary company Mahindra Electric Mobility, were down 2 per cent to 43,056 units in May compared to 43,818 units in same period a year ago.

Total exports fell by 22 per cent to 2,365 units as compared to 3,030 units in the same month a year-ago.

The passenger vehicles segment (which includes UVs, Cars and Vans) sold 20,608 units last month, as against 20,715 units in May 2018.

Also Read: Slowdown blues: Maruti Suzuki May sales decline 22% on muted domestic demand

In the commercial vehicles segment, sales stood at 17,879 units, as against 18,748 units in May 2018.

In May 2019, the medium and heavy commercial vehicles segment's sales was at 637 units.

Commenting on the sales numbers, Rajan Wadhera, President, Automotive Sector, M&M said, "While consumer sentiment and demand continued to be subdued during the pre-election phase, our focus has been on correcting the channel inventory."

"Now, with a stable government at the centre and the forecast of a near normal monsoon, we hope to see an improvement in consumer sentiment over the next few months," he said.

Also Read: M&M net profit dips 29% to Rs 5,315 crore in FY19, board recommends dividend of Rs 8.50 per share

Earlier this week, the company reported 16 per cent decline in its net profit at Rs 969 crore during quarter ended March 31, 2019, as compared to Rs 1,155 crore in the same quarter last year.

M&M sold 1,63,937 vehicles during January-March quarter of 2019 as against 1,56,453 units sold in the same quarter last year, posting a growth of 5 per cent. The tractor sales declined by 15 per cent to 56,903 units in Q4FY19 from 66,885 units sold in Q4FY18.

Edited by Chitranjan Kumar