Mahindra & Mahindra sales dip by 16 per cent in May 2014

Mahinda & Mahindra, one of India’s leading utility vehicle makers, recorded a 16 per cent dip in sales in May 2014. In line with the overall negative sentiments in the automobile industry, the automaker managed to sell 18,085 units in the passenger vehicle segment, as against 22,244 units during May 2013. 

Mahindra’s total domestic sales stood at 35,499 units during May 2014, as against 42,104 units sold during May 2013. Although, the domestic sales figures are significantly lower when compared to the last year, there is a drastic rise in exports, with Mahindra shipping 2,370 units during the month. The export figure represents an impressive growth of 75 per cent.

Commenting on the monthly performance, Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra Ltd. said, "Auto sales continue to remain subdued for many players, at the back of yet another challenging month for the industry. Post the electoral mandate, we expect to see improved sentiments resulting in a better economic situation which we hope will lead to a gradual increase in demand.  We are happy to have achieved a growth of 75% in our export volumes during May".

Despite the rather subdued state of affairs in the auto industry, Mahindra is confident that post the electoral mandate, the industry will witness a gradual increase in demand owing to improved economic situation. We think that the company needs to update its aging models and also; given the recent spike in demand for petrol cars - reconsider petrol as a viable source of fuel for its upcoming compact models.