Automaker Mahindra & Mahindra (M&M) reported a 26 percent decline in domestic sales in August year-on-year (YoY). The company sold a total of 33,564 units in the country last month, down from 45,373 units it sold August 2018.
The company saw a downturn across all segments. Passenger vehicle sales were down 32 percent, falling from 19,758 units in August 2018 to 13,507 last month. Commercial vehicles sales declined by 28 percent, down to 20,326 units from 14,684 YoY.
The medium and heavy commercial vehicles saw a steep 69 percent decline YoY. The sale was down to a mere 354 vehicles from 2,521 units the company sold in August 2018.
Veejay Ram Nakra, chief of sales and marketing, automotive division, M&M expressed optimism about improvement in sales in the upcoming festive season.
“The auto industry continues to be subdued in the month of August due to several external factors. We are optimistic and hopeful of a good festive season going ahead,” he said.
The company's Farm Equipment Sector (FES) also reported a decline in sales. FES sold 14,817 units, including exports, last month, down 2,968 units or 17 percent from 17,785 it sold in the August 2018.
Commenting on the numbers, Rajesh Jejurikar, president - Farm Equipment Sector, Mahindra &Mahindra said that improved monsoon sowing pattern for the kharif crop will boost sales heading into the festive season.
“We have sold 13,871 tractors in the domestic market during August 2019. The improved monsoon spread and sowing pattern for the Kharif crop is likely to help boost rural sentiment going into the festive season," he added.
"The recently announced fiscal measures by the Government may also provide the necessary stimulus for tractor demand uptick. In the exports market, we have sold 946 tractors,” he added.
First Published: IST