In June 2023, Mahindra & Mahindra Ltd. (M&M) reported total auto sales of 62,429 vehicles. This marks a growth of 15.4 per cent compared to the same month last year. There they sold 54,096 units. However, the company experienced a decline in total exports, thus decreasing by 10 per cent to 2,505 units from 2,777 units year-on-year (YoY).
Domestic Market On The Rise
Within the domestic market, total passenger vehicle sales in June showed a significant increase of 21 per cent. Thus reaching 32,588 units compared to 26,880 units in the same month the previous year. Sales of Utility Vehicles (UVs) saw a robust growth of 22 per cent with 32,585 vehicles sold domestically. However, sales of Cars and Vans experienced a drastic decline of 99 per cent, reaching only 3 units during the month.
Mahindra attributed the restricted sales volume for SUVs to a short-term disruption in engine-related parts at the supplier end. They also talked about how semiconductor supply constraints, particularly on specific parts like the Air Bag ECU, persisted during the month.
Moving to M&M’s Farm Equipment Sector (FES), the company reported total tractor sales of 44,478 units in June 2023. This represented a growth of 6.3 per cent compared to the same period the previous year when they sold 41,848 units. Domestic tractor sales experienced a 9 per cent increase to 43,364 units from 39,825 units YoY. However, exports of tractors decreased by 45 per cent to 1,114 units from 2,023 units YoY.
More Positive Facots Favouring Mahindra
Mahindra also mentioned positive factors that might come in support of tractor demand going forward. This includes the fast-paced progress in Kharif crop sowing acreage compared to the previous year, record rabi crops, government support with increased MSP (Minimum Support Price) for all Kharif crops, and improving terms of trade for farmers.
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