M&M Jan sales drop 25% Y-o-Y

Mahindra & Mahindra (M&M) said that its total auto sales skid 25.5% to 39,149 units in January 2021 as against 52,546 units in January 2020.

Sequentially, the auto sales jumped 11.25% in January 2021 compared with 35,187 units in December 2020.

Domestic passenger vehicle sales in January 2021 stood at 20,634 units as against 19,797 units during December 2019, registering a gain of 4% Y-o-Y (year-on-year). Export for December 2020 stood at 2,286 units, recording a 30% growth over 1,761 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 for the month of January. We have also seen strong bookings fueled by continued demand. Supply shortage of micro-processor semiconductors continues to be a serious challenge for the Auto Industry. Going forward we are working with our supplier partners to gear up our supply chain and meet the market demand."

M&M's total tractor sales soared 50% to 34778 units in January 2021 over 23116 units in January 2020. Domestic tractor sales in January 2021 were at 33562 units as against 22329 units during January 2020, registering a growth of 50% Y-o-Y. Tractor exports for the month stood at 1216 units over 787 units in January 2020, recording a 55% jump Y-o-Y.

Hemant Sikka, President - Farm Equipment Sector of Mahindra & Mahindra, commented: "We have sold 33,562 tractors in the domestic market during January 2021 with a growth of 50% over last year. Tractor demand continues to be strong with expansion in Rabi acreage, very high reservoir levels and higher liquidity in the hands of farmers with timely Kharif procurement. Demand is expected to remain robust on account of these factors and higher allocations which are expected for Agriculture in the upcoming Budget in line with Government's continued focus on Agriculture & Rural sector. In the exports market, we have sold 1,216 tractors, a growth of 55% over last year."

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.

Shares of Shares of M&M surged 7.03% to Rs 802.60 on BSE. M&M's business is diversified across farm equipment, auto and automotive components, real estate, hospitality, information technology, defence and aerospace and financial services.

While presenting the Union Budget 2021, Finance Minister Nirmala Sitharaman said that a voluntary scrappage policy for vehicles will be launched, aimed at reducing vehicular pollution. Vehicles would undergo fitness test after 20 years for personal vehicles, 15 years for commercial vehicles.

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