Mahindra & Mahindra Ltd. saw muted sales growth in July on account of a more than 50 percent decline in exports even as medium and heavy commercial vehicles recorded robust growth.
The automaker's exports declined 52 percent year-on-year to 1,985 units last month, dragging down its total sales which grew by a mere six percent to 41,747 units, the company said in a stock exchange filing on Tuesday.
Sales in the medium and heavy commercial vehicles segment rose 72 percent from the same month last year, the company said in a media statement on Tuesday.
“The benefit of a good monsoon, the successful rollout of GST and a good run up to the festive season, starting from August, give us confidence of continuing a robust growth in Q2,” Rajan Wadhera, president of the M&M's automotive sector said in the statement.
Other Highlights
- The utility and passenger vehicles segment recorded a growth of 20 percent and 21 percent respectively.
- Commercial vehicles sales rose 16 percent and three-wheeler sales fell 21 percent last month.
- Light commercial vehicles of less than 3.5 tonnes recorded a growth of 13 percent, whereas light commercial vehicles of more than 3.5 tonnes posted a growth of nine percent.
Farm Equipment Segment
M&M said its tractor sales in July increased 7 percent to 18,832 units compared with the corresponding month last year. Domestic sales in the segment rose 7 percent while exports rose 4 percent in this period.
With a good spread of monsoon followed by kharif sowingwhich has been greater than previous year, we expect the positive sentiment tocontinue during this season and boost tractor demand.Rajesh Jejurikar, President- Farm Equipment Sector, Mahindra & Mahindra
Shares of Mahindra and Mahindra rose as much as 2.05 percent intra-day to Rs 1,432 on Tuesday, the highest level since June 14.
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