Mahindra & Mahindra Ltd. sales for the month of June declined 8.4 percent on de-stocking ahead of the Goods and Service Tax rollout.
The auto maker managed to sell 35,716 units during the month, compared to 39,009 in the same period last year. Tractor sales rose 9 percent year-on-year to 32,933 units.
Dealers have been focused more on reducing existing stock before the GST implementation, which in turn may have impacted the number of vehicles leaving factories. Consumers on the other hand, may have decided to hold back on new purchases, in anticipation of lower prices under GST, some analysts told BloombergQuint.
We are closely observing GST and strongly believe that once we tide over the initial uncertainties, GST is set to usher in a new era for the economy in general and the automotive industry in particular. Our focus has been to minimise channel stocks to reduce the transition losses on account of GST implementation,” said Rajan Wadhera, president (automotive sector) at M&M.
Its commercial vehicles segment grew at 12 percent for the month, and 17 percent in the first quarter. The medium and heavy commercial vehicle segment also registered a growth of 35 percent during the month, according to the company's exchange filing.
“Going forward, we expect that our wide product portfolio will drive our growth,” said Wadhera.
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