Photo: Abhijit Bhatlekar/Mint
Photo: Abhijit Bhatlekar/Mint

Mahindra & Mahindra October sales rise 21%

The auto maker sold 48,815 vehicles in the domestic market in October, including passenger vehicles and commercial vehicles

Mahindra and Mahindra Ltd on Sunday said it sold 48,815 vehicles in the domestic market in October, 21% more than in October 2014. The numbers included passenger vehicles and commercial vehicles, Mahindra said in a statement.

Sales in the passenger vehicles segment, which includes utility vehicles, cars and vans, rose 19% to 24,060, the highest in two years. Sales were significantly helped by the TUV300, a sport utility vehicle it launched on 10 September, Pravin Shah, president and chief executive at Mahindra, said in the statement.

The growth, Shah said, is “backed by an excellent response garnered from the recently launched TUV300 as well as brands such as XUV500, Scorpio, Bolero and pickups. We are quite hopeful of this positive growth momentum continuing for the rest of the year."

Sales of Mahindra’s utility vehicles, which were growing at a fast clip till March 2013, started slowing in April 2013 after the government raised excise duty on bigger utility vehicles. Sales were further impacted when rivals launched new compact utility vehicles. The launch of the TUV300 compact SUV was critical for Mahindra in recovering some of the ground it has ceded in the past.

Shah also attributed the strong volume growth to the festive season, which has “provided the much-needed fillip for the auto industry, especially on the back of the new launches of most manufacturers, which have received an encouraging response". He expects a drop in interest rates and benign fuel prices will help maintain a good growth momentum.

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