Mahindra & Mahindra (M&M) said that its total auto sales skid 10.30% to 35,187 units in December 2020 as against 39,230 units in December 2019.
Sequentially, the auto sales jumped 7.52% in December 2020 compared with 32,726 units in November 2020.
Domestic passenger vehicle sales in December 2020 stood at 16,182 units as against 15,691 units during December 2019, registering a gain of 3% Y-o-Y (year-on-year). Export for December 2020 stood at 2,210 units, recording a 3% growth over 2,149 units exported in the same month last year.
Veejay Nakra, the Chief Executive Officer, Automotive Division of M&M, said that: "At Mahindra we have witnessed a growth of 5% in Utility Vehicles in the month of December. Our overall sales have been affected due to the continuing supply chain challenges related to the constantly changing global environment, more specifically the supply shortage of micro-processors (semiconductors) used in Electronic Control Unit (ECUs). Demand continues to remain strong even after the festive season and as we get into the new year."
M&M's total tractor sales soared 25% to 22,417 units in December 2020 over 17,991 units in December 2019. Its domestic tractor sales in December 2020 were at 21,173 units as against 17,213 units during December 2019, registering a growth of 23% Y-o-Y. Tractor exports for the month stood at 1,244 units over 778 units in December 2019, recording a 60% jump Y-o-Y.
Hemant Sikka, President - Farm Equipment Sector of Mahindra & Mahindra, commented: "We have sold 21,173 tractors in the domestic market during December 2020 with a growth of 23% over last year. The wholesale volumes continued to be strong fueled by restoration of channel inventory post the festive season, announcement of hike in tractor prices by major OEMs and anticipation of sustained demand on the back of higher Rabi acreage, GoI support in Kharif procurement & rural development schemes. In the exports market, we have sold 1,244 tractors, a growth of 60% over last year."
In a separate announcement, M&M and Ford on Friday said that both have mutually and amicably determined that they will not complete a previously announced automotive joint venture between their respective companies. The action followed passing of the 31 December 2020, "longstop", or expiration, date of a definitive agreement the organizations entered into in October 2019.
According to the companies, the outcome was driven by fundamental changes in global economic and business conditions - caused, in part, by the global pandemic - since the agreement was first announced. Those changes influenced separate decisions by Ford and Mahindra to reassess their respective capital allocation priorities.
M&M said that this decision will not have any impact on its product plan. It is well positioned in its core true SUV DNA and product platforms with a strong focus on financial performance. In addition, M&M is accelerating its efforts to establish leadership in electric SUVs.
M&M reported 59.7% decline in net profit to Rs 148.36 crore in Q2 FY21 from Rs 368.43 crore in Q2 FY20. Net sales fell 1.5% year-on-year (Y-o-Y) to Rs 23,566.75 crore during the quarter.
M&M's business is diversified across farm equipment, auto and automotive components, real estate, hospitality, information technology, defence and aerospace and financial services.
Shares of M&M advanced 2.49% to Rs 738.55.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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