Mahindra & Mahindra Ltd (M&M) has reported a year-on-year decline of 11% in its domestic wholesale volumes, which stood at 49,193 units for October 2019. The company’s total domestic wholesale volume, which comprises three categories namely passenger and commercial vehicles and three-wheelers, for the year-ago period was 55,350 units.
Its passenger vehicle (PV) wholesales, which include the dispatches from the company’s electric vehicle arm Mahindra Electric Mobility Ltd, stood at 18,460 units for the last month, down from 24,066 units recorded in October 2018. M&M’s PV portfolio includes utility vehicles, cars and vans.
Meanwhile, the commercial vehicle volumes were at 23,582 units, down 3% YoY. The three-wheeler volumes saw an uptick of 3% YoY at 7,151 units for the past month.
On the overall domestic volumes, cars and vans along with the medium and heavy commercial vehicle (MHCV) segment reported the steepest fall of 62% and 41% YoY respectively.
M&M’s total export shipments came down to 2,703 units in October from 3,066 units from the year-ago period.
Nevertheless, Veejay Ram Nakra, chief of sales and marketing, automotive division, M&M said that the retail volumes exceeded wholesale by almost 40% last month. “This robust retail performance was contributed by both passenger & commercial vehicles. Further, our billing numbers are in line with what we had planned for the month, since the objective was to significantly correct our channel inventory," he added.
Retails in October were highest ever for any month for M&M, said managing director, Pawan Goenka. “I hope the retail momentum in October is an indicator of sentiment turning positive and will continue in coming months," he tweeted.
On tractor sales, although the company has reported that domestic wholesales have declined from 46,312 units in October last year to 44,646 units this year, Goenka said M&M’s tractor dealers recorded highest ever monthly deliveries last month.
Stressing on the relevance of reporting retail sales, Anand Mahindra, chairman, Mahindra Group said, “The industry really needs to switch to reporting retail and not wholesale volumes. There are some strong signs of life in the market. And pipeline stocks have been slashed by controlling billings to dealers. Very appropriate stock levels now."
Meanwhile, Rajesh Jejurikar, president - farm equipment sector, M&M suggest that the company has recorded a healthy double digit growth in tractor retails for the last month.
“Higher reservoir levels, adequate soil moisture condition and an improved MSP of Rabi crop, augur well for tractor demand in the next few months," he added.