Mahindra and Mahindra Ltd.'s sales grew by 3 percent last month. The country's largest utility vehicle and tractor manufacturer sold close to 42,000 units in May, compared to 40,656 units in the same period last year.
Strong small commercial vehicle and tractor sales helped the Mumbai-headquartered company hedge against the sharp dip witnessed in the medium and heavy commercial vehicles segment. Passenger and utility vehicle sales also grew by 3.5 percent in May.
The company which exports its passenger and utility vehicles to a number of countries in Africa and South America, saw its exports drop 68 percent, year-on-year.
Given the favourable monsoon projections and the focused investment in the rural sector, we have a robust outlook for future which is expected to spur demand.Rajan Wadhera, President - Automotive Sector, M&M
Tractor Sales Outperform
Tractor sales grew by more than 10 percent in May, to 25,599 units, compared to the same month last year.
With the Indian meteorological department projecting normal monsoon this year, agriculture equipment manufacturers are hoping that sales continue to rise in coming months.
We hope that the announcement of record production estimates for majorcrops, coupled with higher MSP will drive positive sentiments and boost tractor demand in this season.Rajesh Jejurikar, President - Farm Equipment Sector, M&M
Shares of the company rose as much as 0.61 percent to Rs 1424.9 on the Bombay Stock Exchange.
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