M&M posts 65% growth in tractor sales in August
1 min read . Updated: 01 Sep 2020, 03:25 PM IST- While the tractor sales were higher, M&M’s total vehicle wholesales in August declined 16% to at 30,426 units on yearly basis
MUMBAI : Mahindra & Mahindra Ltd (M&M) on Tuesday reported 65% year-on-year (y-o-y) rise in total tractor wholesales at 24,458 units in August, clocking its highest ever sales on the back of robust demand in the domestic market. The company had sold 14,817 tractors in the same month last year.
M&M’s domestic tractor sales grew 69% y-o-y to 23,503 units in August from 13,871 units in the same months of the previous year. The company’s tractor exports were a tad higher at 955 units as against 946 units from the year-ago period.
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According to Hemant Sikka, president, farm equipment sector, M&M, the tractor industry growth remained strong in August on account of continued positive sentiment due to improved Kharif sowing this year thereby indicating a bumper harvest, bountiful monsoon, good rural cash flows and low base effect.
“We expect rural sentiments to remain positive and translate into robust tractor demand as we move into the festive period," Sikka said.
M&M’s total vehicle wholesales in the given month declined 16% to at 30,426 units on yearly basis. While subdued demand for three-wheelers and commercial vehicles (CVs) pulled back M&M’s monthly wholesale dispatches, the passenger vehicle sales stood at 13,651 units up 1% from August 2019.
In the CV segment, light commercial vehicles or LCVs with gross vehicle weight (GVW) of less than 3.5 tons drove the overall volumes with sales at 15,097 units, up 9%. Dispatches of LCVs with GVW of more than 3.5 tons declined 79% to 98 units, while the medium and heavy commercial vehicle or MHCV volumes dropped 71% to 104 units. M&M’s overall CV volumes during August were at 15,299 units against 14,684 units from the year-ago period.
“At Mahindra, we continue to see good recovery in demand for both SUVs and pick-ups in the small commercial vehicles segment. For the month of August, we have registered growth in both SUVs and Pick-ups. We have been able to meet the uplift in demand by managing the supply chain challenges and going forward will continue to keep our focus on it," said Veejay Nakra, chief executive officer, automotive division, M&M.
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