Mahindra & Mahindra lost 1.4% to Rs 878 at 9:21 IST on BSE after the company said its total auto sales declined 13.77% to 42,685 units in January 2014 over January 2013.
The company announced the sales numbers on Saturday, 1 February 2014.
Meanwhile, the S&P BSE Sensex was down 72.92 points or 0.36% at 20,440.93.
On BSE, so far 908 shares were traded in the counter as against average daily volume of 91,867 shares in the past one quarter.
The stock hit a high of Rs 887.70 and a low of Rs 876.10 so far during the day. The stock had hit a record high of Rs 1,026.45 on 20 May 2013. The stock had hit a 52-week low of Rs 741.50 on 28 August 2013.
The stock had underperformed the market over the past one month till 31 January 2014, sliding 5.62% compared with the Sensex's 3.1% fall. The scrip had, however, outperformed the market in past one quarter, advancing 0.24% as against Sensex's 3.07% fall.
The large-cap company has equity capital of Rs 307.94 crore. Face value per share is Rs 5.
M&M's domestic sales declined 15.71% to 40,324 units in January 2014 over January 2013. Exports surged 42.05% to 2,361 units in January 2014 over January 2013.
The sales of Passenger Vehicles segment declined 25.46% to 19,792 units in January 2014 over January 2013. The four-wheeler commercial vehicle sales rose 4.49% to 15,100 units in January 2014 over January 2013. Three-wheeler sales declined 18.94% to 4,710 units in January 2014 over January 2013.
Commenting on the monthly performance, Pravin Shah, Chief Executive, Automotive Division, M&M said, "The first month of 2014 did not witness any improvement in the overall industry performance and the situation remains subdued. The recent repo rate hike will in coming months escalate the rate of interest on car loans impacting consumer sentiment. We hope the upcoming Auto Expo which will showcase new products and technology, will provide a trigger in giving a much needed boost to the auto industry and overall sentiment".
Separately, M&M on Saturday, 1 February 2014 said its total tractor sales rose 15% to 20,109 units in January 2014 over January 2013. Domestic tractor sales rose 18% to 19,389 units in January 2014 over January 2013. Exports declined 33% to 720 units in January 2014 over January 2013.
Commenting on the monthly performance, Rajesh Jejurikar, Chief Executive, Tractor and Farm Mechanization, M&M said, "We have achieved a cumulative domestic growth till January 2014 of 23%. This is primarily due to a bumper Kharif crop and the anticipation of a good Rabi crop. We expect the good run to continue for the rest of the quarter".
M&M's net profit rose 9.7% to Rs 989.50 crore on 8.7% decline in net sales to Rs 8814.33 crore in Q2 September 2013 over Q2 September 2012. The company unveils Q3 December 2013 results on 14 February 2014.
The Mahindra Group operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, financial services, industrial equipment, logistics, real estate, retail, steel and two wheeler industries.
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