Mahindra & Mahindra's total automotive sales (domestic + exports) stood at 32,476 vehicles in February 2020, down 42% from 56,005 vehicles reported in February 2019.
Domestic sales tanked 42% to 30,637 units in February 2020 from 52,915 units recorded in February 2019. Total exports slumped 40% to 1,839 units in February 2020 over February 2019.On a sequential basis, total automotive sales declined 38.2% from 52,546 units registered in January 2020.
Commenting on the company's performance, Veejay Ram Nakra, Chief of Sales and Marketing, Automotive Division, said, The ramp-down of BS IV vehicle production has been in line with our plan for February. However, because of the unforeseeable challenges on the parts-supply from China, our BS VI ramp-up has been affected. This has resulted in a high de-growth in our billing volume for February and our dealer inventory is, now, under 10 days. Going into March, we anticipate the challenge on parts-supply to continue for another few weeks, before we get back to normalcy.
M&M Farm Equipment Sector's (FES) total tractor sales rose 19% to 22,561 units in February 2020 from 18,978 units in February 2019. Domestic sales in February 2020 were at 21,877 units, as against 18,105 units during February 2019, up 21% YoY. Exports for the month slumped 22% to 684 units from 873 units in the year ago period.
Commenting on the performance, Rajesh Jejurikar, President - Farm Equipment Sector, said, The tractor demand trend is expected to strengthen on the back of a robust Rabi output and the prevailing crop prices. Going forward, the increase in rural and agri spending on core schemes by the Government should augur well for the industry. In the exports market, we have sold 684 tractors.
M&M operates in automotive segment comprising of sales of automobiles, farm equipment and sale of spare parts.
Shares of M&M were down 2.1% at Rs 446.8. M&M has slumped 18.39% in last one month as compared to a 11.84% fall in Nifty Auto index.
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