Sales at Mahindra and Mahindra Ltd.'s farm equipment division remained nearly flat in May, indicating that India’s agri sector may have benefited from the relaxation in the coronavirus-induced lockdown.

The company sold 24,017 tractors last month, or 2% more than the 23,539 units sold in the year-ago period. Exports took a nosedive—falling 72% to just 324 units.

“The timely relaxation of the lockdown for the agricultural sector helped ensure the speedy recovery of tractor demand during May,” Hemant Sikka, president-farm equipment sector at Mahindra and Mahindra, said in a statement.

Going ahead, Sikka sees farmer sentiment remaining positive due to robust rabi crop production, higher procurement, good price realisations and the forecast of a normal monsoon that bodes well for a good kharif crop.

“All these augur well for tractor demand going forward,” he said.

Sales of Mahindra and Mahindra Ltd.’s auto division declined 79% year-on-year to 9,560 units in May, the company said in a statement on Monday.

Break-up of Mahindra’s auto sales in May:

• Passenger vehicles: 3,867 units versus 20,608 units a year ago.
• Commercial vehicles: 5,170 units versus 17,879 units a year ago.
• Exports: 484 units versus 2,365 units a year ago.

The company’s overall automotive sales (domestic + exports) stood at 9,560 units in May 2020, compared to 45,421 units during May 2019.

“We have opened 70% of our dealerships and retail sales have begun,” Veejay Nakra, chief executive officer at Mahindra’s automotive division said in the statement.

“We are seeing initial traction for our small CVs and SUV brands such as the Bolero and Scorpio. As new lockdown norms are being announced we are hopeful of demand gaining traction in the coming months,” he said.

Hyundai Motor India Pvt. Ltd. has reported a 78.7% decline in total sales at 12,583 units in May. The company had reported sales of 59,102 units in May 2019.

Domestic sales during the last month were down 83.8% to 6,883 units as against 42,502units in May 2019. The company said it exported 5,700 units during the last month as compared to 16,600 units in May last year.

"The company has made a humble beginning towards normalcy by registering sales of 12,583 for the month of May," Tarun Garg, Hyundai India's director for sales, marketing and service, said in a statement. “This performance was possible on account of strong customer interest and demand for products like Creta, Verna and Venue.”

Farm equipment maker Escorts Ltd. has reported a 3.4% decline in total tractor sales at 6,594 units in May. The company had sold a total of 6,827 units in the same month last year, it said in a regulatory filing.

Domestic tractor sales declined marginally at 6,454 units as against 6,488 units in May last year, the company added. Exports during the month stood at 140 units as against 339 units last year, down 58.7%, it said.

MG Motor India Pvt. Ltd. sold 710 units of its Hector SUV in May, amid supply chain constraints induced by the coronavirus lockdown.

The company has resumed production at its Halol manufacturing plant in Gujarat at 30% capacity utilisation, MG Motor India said in a statement. About 65% of showrooms and service stations across the country are also operational with reduced manpower.

Commenting on business resumption and sales performance, MG Motor India Director (Sales) Rakesh Sidana said, "Supply chain disruption coupled with strict credit financing along with non-operation of some dealerships due to the lockdown have impacted our sales in May."

Sidana said that the company hopes to restore normalcy from July onwards. "All of our vehicles' stocks across channels and dealership inventory are BS-VI units," he added.

The company said as part of its 'Phase 2' expansion plan, the carmaker is introducing the ZS EV in six new cities, including Pune, Surat, Cochin, Chandigarh, Jaipur, and Chennai, from June 2020. Besides, it is also expanding the presence of the electric vehicle across 11 markets in India.