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Mahindra and Mahindra logo   (REUTERS)
Mahindra and Mahindra logo (REUTERS)

M&M’s February passenger vehicle sales drop 58% YoY

  • M&M’s PV sales were at 10,938 units in February, as against 26,109 units sold during the year-ago period
  • Coronavirus has disrupted supply chains from China for the auto industry, among others

Mahindra & Mahindra Ltd (M&M) reported a 58% year-on-year (YoY) fall in its passenger vehicle (PV) sales for February as the auto maker lowered its production of BS-IV compliant vehicles while facing challenges in ramping up the same for BS-VI vehicles due to difficulty in procuring critical parts from China.

The outbreak of Covid-19, commonly known as coronavirus, in China has disrupted supply chains for auto and metal firms, among others.

M&M’s PV sales were at 10,938 units in February, as against 26,109 units sold during the year-ago period.

In the utility vehicle (UVs) category, which contributes near 100% of its total PV sales, M&M sold 10,675 units last month compared with 24,349 units in the year-ago period.

“The ramp-down of BS-IV vehicle production has been in line with our plan for February. However, because of the unforeseeable challenges on the parts-supply from China, our BS-VI ramp-up has been affected. This has resulted in a high de-growth in our billing volume for February and our dealer inventory is, now, under 10 days," said Veejay Ram Nakra, chief of sales and marketing, automotive division, M&M.

In the commercial vehicle (CV) segment, M&M sold 15,856 units last month, down 25% YoY. This was led by a steep fall in sales of CVs, with gross vehicle weight (GVW) of less than 3.5 tonne, that declined 24% from a year ago to 14,991 units.

In the medium and heavy commercial vehicle (MHCV) category, M&M sold 436 units in February as against 686 units a year ago.

M&M’s total domestic sales were at 30,637 units in February, down 42% in the same period last year. The company’s exports too were down 40% YoY at 1,839 units during the last month.

“Going into March, we anticipate challenges on parts-supply to continue for another few weeks, before we get back to normalcy," said Nakra.

The Anand Mahindra-led company has also developed mStallion family of engines across 1.2 liter, 1.5 liter and 2 liter petrol engines that would power PVs under M&M, Ford and SsangYong brands going forward.

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