2 min read.Updated: 01 Jan 2020, 04:58 PM ISTAmit Panday
The company saw its PV sales rising a 4% YoY on discount-driven demand during the month
The overall on-year growth in December sales was driven by sales of utility vehicles and three-wheeler models
Mumbai: Mahindra & Mahindra Ltd (M&M) has reported a year-on-year (YoY) growth of 1% in its domestic sales, which stood at 37,081 units in December as against 36,690 units in the year-ago period. The overall on-year growth in December sales was driven by sales of utility vehicles and three-wheeler models.
The company saw its passenger vehicle (PV) sales rising a 4% YoY on discount-driven demand during the month. The PV volumes stood at 15,691 units in December 2019 as against 15,091 units in the year-ago period. M&M’s utility vehicle portfolio, which includes popular models such as the Scorpio, XUV500, XUV300 and others, recorded sales volumes at 15,225 units in December 2019, up 10% YoY. The volumes for cars and van category, however, stood at 466 units last month compared with 1200 units in the year-ago period.
The maker of utility and commercial vehicles also recorded a YoY growth of 14% in three-wheeler category, which saw wholesale volumes at 5,372 units last month.
The company’s commercial vehicle (CV) sales, which posted a drop of 5% YoY in December, stood at 16,018 units as against 16,906 units in the year-ago period. Light commercial vehicles (LCVs), with gross vehicle weight (GVW) of less than 3.5 tonne, the category which accounts for more than 90% of M&M’s CV volumes, posted a marginal decline of 2% YoY at 15,179 units for December 2019.
Meanwhile, M&M’s LCVs with GVW of more than 3.5 tonne and medium and heavy commercial vehicles (MHCVs) continued to report declining sales on subdued demand. Both the vehicle categories reported wholesales of 361 units (down 34% YoY) and 478 units (down 42% YoY), respectively.
“Our performance in the month of December is as per year end sales outlook and currently we are also comfortable with our overall stock levels. As we get into the New Year, we are fully equipped to roll out our BSVI products and have taken all requisite measures for a smooth transition over the next three months," said Veejay Ram Nakra, chief of sales and marketing, automotive division, M&M.
M&M’s farm equipment sector has reported a YoY growth of 4% in domestic tractor sales, which stood at 17,213 units in December 2019. The company’s tractor sales were 16,510 units in December 2018.
“Tractor demand looks positive in the near term led by the expectation of a better rabi output, supported by crop prices and government thrust on irrigation, rural infrastructure and agriculture sectors," Rajesh Jejurikar, president - farm equipment sector, M&M.