Mahindra's November sales fall 9% to 41,235 units dented by lean post-festive season month

Homegrown auto major Mahindra and Mahindra (M&M) on Sunday reported a 9% year-on-year fall in its total sales at 41,235 units as against 45,101 units in the same month last year, it said in a regulatory filing. The slump in sales came following a lean post-festive season month.

M&M sold 51,896 units in the previous month (October 2019) as compared to 58,416 units in the corresponding month last year.

The domestic sales of the auto major plunged 7% at 38,614 units last month as compared to 41,564 units in November 2018.

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Exports also declined 26 per cent to 2,621 units as against 3,537 units in the year-ago month.

In the passenger vehicle segment, which includes utility vehicles, cars and vans, the company sold 14,637 units last month as compared to 16,188 units in the same month last year, down 10 per cent.

In the commercial vehicle segment, the company sold 17,384 units in November as against 19,673 units in the same month a year ago, down 12 per cent.

"The month post-festive season is historically a lean month for the automotive industry. Consumer demand, especially for passenger vehicles, typically picks up in the year-end that is in December. Therefore, we expect December to pan out better for the automotive industry," M&M Chief of Sales and Marketing, Automotive Division, Veejay Ram Nakra said.

Also Read: October auto sales: Festive season pulls auto industry out of red but the joy could be short-lived

Domestic sales in the farm equipment segment in November stood at 20,414 units as against 25,159 units in the same month last year.

Exports for the month stood at 618 units.

Total tractor sales (domestic + exports) during November 2019 stood at 21,032 units as against 25,949 units in the same month last year.

Commenting on the performance, Rajesh Jejurikar, President - Farm Equipment Sector, Mahindra & Mahindra Ltd told PTI, "We have sold 20,414 tractors in the domestic market during November 2019. With government support on agri and rural sector and healthy reservoir levels due to the above-normal monsoon, we expect a good Rabi output in the coming months".

Also Read: Mahindra and Mahindra October sales fall 11% to 51,896 units; car, van sales crash 62%