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M&M records 6% YoY drop in November auto sales

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Capital Market
Last Updated : Dec 01 2021 | 2:16 PM IST

Mahindra & Mahindra said that its overall auto sales (passenger vehicles+ commercial vehicles+ exports) for the month of November 2021 stood at 40,102 vehicles, down by 6% from 42,731 vehicles sold in November 2020.

While domestic passenger vehicles sales rose 7% YoY to 19,458 units, domestic commercial vehicles sales fell 23% to 17,543 units in November 2021 over November 2020.

Exports for the month of November 2021 were at 3,101 vehicles (up 90% YoY).

Veejay Nakra, chief executive officer, automotive division, M&M, Our growth in SUVs continues with an 8% increase in the month of November. The demand remains strong across our product portfolio of SUVs, pickups, and small commercial vehicles. Momentum in exports continues with a 90% growth. The issues around semi-conductor related parts continue to remain a challenge for the industry.

M&M's Farm Equipment Sector (FES) recorded total tractor sales (domestic + exports) of 27,681 units in November 2021, which is lower by 15% as compared with 32,726 units for the same period last year.

Domestic sales were at 26,094 units (down 17% YoY) while Exports stood at 1,587 units (up 43% YoY) in November 2021.

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Hemant Sikka, president - Farm Equipment Sector, Mahindra & Mahindra, said, De-growth over November 2020 is due to high base of last year and incessant rains in some states. Rural sentiments continue to remain positive on account of good Rabi sowing and high reservoir levels. Escalation in procurement for Kharif crop will bring steady cash flows, which is expected to boost tractor demand going forward.

M&M Group enjoys a leadership position in farm equipment, utility vehicles, information technology and financial services in India. It is the world's largest tractor company by volume. It has a strong presence in renewable energy, agriculture, logistics, hospitality and real estate.

On a consolidated basis, the M&M Group's net profit before exceptional items rose 43% year-on-year to Rs 1,975 crore in Q2 September 2021. The Group's net profit after adjusting for exceptional items surged 214% YoY to Rs 1,929 crore in Q2 September 2021. Revenue rose 12% to Rs 21,470 crore during the period under review.

The scrip shed 0.03% to currently trade at Rs 835.50 on the BSE.

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First Published: Dec 01 2021 | 1:59 PM IST

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