Mahindra & Mahindra released its automotive sales report for the month of March 2020 and 2019-20 Financial Year. Mahindra states that in March 2020, it recorded monthly sales of 3,384 units in the passenger vehicle segment which include UVs, Cars and Vans. When compared to its sales in March 2019 that stood at 27,646 units. Passenger vehicle sales for Mahindra saw a significant year-on-year drop of 87.8%.
Veejay Ram Nakra, Chief Executive Officer, Automotive Division, M&M Ltd. said, “Our performance in March has been muted on account of the impact of the current lock-down related to COVID-19 and the disruption in our BS-VI ramp-up plan. The latter was planned between February and March but was affected due to the challenges of parts supply from global and local suppliers. We have been able to clear our BS-IV inventory, but for fewer than 100 vehicles. However, there are many vehicles that are sold, but not yet registered because of the closure of RTOs.”
Commercial vehicle sales also dropped for Mahindra by 90% as only 2,325 units were sold in March 2020 compared to 24,423 units in March 2019. Mahindra recorded overall exports of 1,271 units as total exports dropped by 68%. Mahindra’s overall vehicle sales for the month stood at 7,401 vehicles inclusive of domestic and export sales. It dropped by 88% when compared to the corresponding month the previous year when Mahindra sold 62,952 vehicles.
As far as the entire financial year is concerned, Mahindra took a hit by closing its fiscal with 4,76,043 unit sales in FY 2019-20 compared to 6,08,596 vehicles during FY-19 resulting in a drop of 22%.
For the month of March 2020, Mahindra states that the lock-down related to COVID-19 pandemic, the sales of its vehicles have been affected. Additionally, its BS6 ramp-up plan which was scheduled between February and March was also affected by challenges faced by its global and local parts suppliers as well.
This year, Mahindra is expected to launch a new XUV500, in addition to the highly anticipated Thar. Mahindra will also introduce a new line up of petrol engine, however, there is no definite timeline currently for these products to make their market debut.
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