Mahindra & Mahindra Reports 1 per cent Rise in June Sales

Auto major Mahindra & Mahindra, which reported a marginal 1 per cent increase in total sales at 38,471 units in June, on Tuesday said a weak monsoon could impact the overall consumer sentiment, which may result in prospective buyers putting on hold the purchase.

The company had sold 38,092 units in the same month last year.

"Looking at the product portfolio that we have and the likely economic activities emerging out of the new government's long-term investment plans, we see that demand will have a good potential," M&M chief executive (automotive division) Pravin Shah said.

"But monsoon impacts people's sentiment, so there you can see the holdback in terms of purchases, mainly connected with the personal usages," he said.

He, however, expressed hope that given the long-term investment plans, the industry should get the benefit of those demand in terms of higher volumes.

"Some amount of momentum is already visible in the commercial segment in the last few months," he said.

The recent announcement by the government of an extension in the lowering of excise duty will provide a fillip leading up to the festive season, he said.

"It is a good decision and surely will help the industry, which is in need of such support. We have seen some increase in footfalls in the showrooms following the government's decision and we hope to see these enquiries getting converted into sales."

However, the conversion factor will depend on price point, affordability and decision making and from segment to segment in the auto industry, he said.

He said the company has lined up variants and new models for launch in the next three quarters, but did not specify the numbers.

"With the continuation of lower excise duty and new variants and products from our end, we hope to perform better going forward."

M&M's domestic sales also rose marginally to 36,457 units last month as against 36,207 a year ago. Sales of passenger vehicles, including Scorpio, XUV 5OO, Xylo, Bolero and Verito, stood at 16,780 units compared with 17,232 units in June 2013 - a 3 per cent decline.

Four-wheel commercial vehicle sales rose 3 per cent to 14,138 units in June 2014 as against 13,761 units in June 2013. Exports rose 7 per cent to 2,014 units from 1,885 units in the same period a year earlier.