Mahindra & Mahindra Ltd. (M&M Ltd.), one of India’s leading auto manufacturer, has yesterday announced its auto sales performance for the month of June 2017. The month seems to have been a bit tough for Mahindra with the overall sales standing at 35,716 vehicles which is a good 3200 units lesser when compared to 39,009 vehicles during June 2016.
The Passenger Vehicles segment (which includes UVs, Cars and Vans) sold 16,170 vehicles in June 2017 as against 17,070 vehicles during June 2016. Clearly, couple of Mahindra’s latest launches such as KUV 100 are not performing as well as expected. In fact, Mahindra too had acknowledged the same and had stated that they would be releasing a toned down version of the KUV 100 soon.
The company’s domestic sales stood at 33,861 vehicles during June 2017, as against 34,989 vehicles during June 2016. Sales of the two-wheeler lineup from the Mahindra stable which includes Mahindra Centuro and Mojo motorcycles, Mahindra Gusto scooter, is still facing a tough competition and is struggling to put up respectable numbers.
In June 2017, the Medium and Heavy Commercial Vehicles segment sold 700 vehicles. Exports for June 2017 stood at 1,855 vehicles. The uncertainty around GST reforms too could have been a factor in Mahindra registering a lesser MoM number.
Commenting on the performance, Rajan Wadhera, President, Automotive Sector, M&M Ltd. said, “At Mahindra’s Auto Division, while our domestic sales for June registered a de-growth of 3%, for the first quarter we grew by 1%. Our CVs grew by 17% in the first quarter and 12% in June 2017. Additionally the MHCV segment also registered a growth of 35% during the month. Our focus has been to minimise channel stocks to reduce the transition losses, on account of GST implementation. We are closely observing GST and strongly believe that once we tide over the initial uncertainties, GST is set to usher in a new era for the economy in general and the automotive industry in particular. Going forward, we expect that our wide product portfolio will drive our growth”.