Mahindra Oct domestic sales up 45.8%

* Achieves highest-ever billing in the company's history

* Bolero and Mahindra Pik-Up clocks the highest sales in October '07

* Mahindra Alfa marketshare gallops to 25%

* Total domestic sales zoom ahead to 23,578 units in October

MUMBAI, November 1, 2007: The $6 billion Mahindra Group's Automotive Sector fortified its position as the market leader in the Utility Vehicles, Pick-Ups and the 3-Wheeler segments with stupendous sales performances in October 2007, even as it continued to dominate all segments of the market in which it is present. Bolero, Champion Alfa and Mahindra Pik-up sold record numbers in October 2007.

M&M continued its onward momentum of H1 F07, where it grew by 36% as against the industry growth rate of 3%. The company registered a 45.8% growth in October '07 with total domestic sales of 23,578 units as against 16173 units in October '06.

Cumulative sales including exports grew by 37.3% in October '07 with total sales of 1,30,772 vehicles as against 95,253 vehicles for the corresponding period last year. Excluding Logan, M&M sold 21,364 vehicles in the current fiscal.

Total sales including exports for the month of October '07 numbered 24,679 as against 17,109 a growth of 44.2% over the corresponding month last year. M&M exported 1101 vehicles in October '07 as against 936 in October '06.

Utility Vehicles sales zoomed to 16,711 vehicles in October '07 as against 11,789 in October '06, LCVs sales increased rose to 817 as against 758 in October '06 and sales of 3-Wheelers was up at 3836 units as against 3626 in October '06.

The Bolero continued to be India's most popular UV appealing to the young, urban consumer, with 46% of its customers falling in the 25-35 age bracket.

Champion Alfa with superior product attributes, registered the highest ever sales in F'07.

Passenger Cars

Mahindra Renault sold 2214 units of India's first wide body car, Logan, in October.

Domestic sales

M&M clocked total vehicles sales of 23,578 units in the domestic market as against 16,173 in the corresponding month last fiscal, a growth of over 45.8%.

Exports

The company's automotive sector clocked sales of 1101 vehicles in October as opposed to 936 units in the corresponding period last fiscal.

Tractor exports zoom

The farm equipment sector registered an overwhelming 87% increase in exports in October 2007. M&M clocked total sales of 11,186 tractors, including exports in October '07 as against 13,384 in October '06.

The domestic sales volume for the month stood at 10,500 against 13,017 in F07, while exports in October '07 was 686 against 367 in October '06.

The company posted cumulative (April-October) sales volumes of 60704 tractors in F08 including exports as compared with 64307 in F07 in the same period last year.

External factors contributing to the current standing include:

* Overall Industry is affected in AP due to cyclone

* Floods in the eastern part of the country (WB & Bihar) affected sales in these areas

* No significant improvement in the Retail scenario in states of UP, MP, Karnataka where the industry drop continues to be 25%-30%

About The Mahindra Group

The US $6 billion Mahindra Group is among the top 10 industrial houses in India. Mahindra & Mahindra is the only Indian company among the top three tractor manufacturers in the world. Mahindra's Farm Equipment Sector has recently won the Japan quality Medal, the only tractor company worldwide to be bestowed this honour. It also holds the distinction of being the only tractor company worldwide to win the Deming Prize. Mahindra is the market leader in multi-utility vehicles in India. It made a milestone entry into the passenger car segment with Logan, a product of its JV with Renault SA.

The Group has a leading presence in key sectors of the Indian economy, including the financial services (Mahindra & Mahindra Financial Services Ltd, Mahindra Insurance Brokers Ltd., Mahindra Rural Housing Ltd.), trade and logistics (Mahindra Intertrade Ltd., Mahindra Steel Service Ltd., Mahindra Middleeast Electrical Steel Service Centre FZE, Mahindra Logistics) automotive components, information technology (Tech Mahindra, Bristlecone), and infrastructure development (Mahindra GESCO, Mahindra Holidays & Resorts India Ltd., Mahindra World City. With over 62 years of manufacturing experience, the Mahindra Group has built a strong base in technology, engineering, marketing and distribution which are key in its evolution as a customer-centric organization and has recently announced the setting up its retail venture, Mahindra Retail. The Group employs over 40,000 people and has several state-of-the-art facilities in India and overseas.

The Mahindra Group has ambitious global aspirations and has a presence in five continents. Mahindra products are today available in every continent except Antarctica. M&M has one tractor manufacturing plant in China, three assembly plants in the United States and one at Brisbane, Australia. It has made strategic acquisitions across the globe including Stokes Forgings (UK), Jeco Holding AG (Germany) and Schoneweiss & Co GmbH (Germany). Its global subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA Inc. and Mahindra South Africa. M&M has entered into partnerships with international companies like Renault SA, France, and International Truck and Engine Corporation, USA. Forbes has ranked the Mahindra Group in its Top 200 list of the World's Most Reputable Companies and in the Top 10 list of Most Reputable Indian companies. Mahindra has recently been honoured with the Bombay Chamber Good Corporate Citizen Award for 2006-07.