Mahindra & Mahindra Ltd. (M&M Ltd.), the second biggest home-growth automaker, reported a 15% fall in its July auto sales, shortly after Maruti Suzuki reported a 33% decline.
Total domestic auto sales was down 16%, versus 35% for Maruti Suzuki.
The decline in its Utility Vehicle sales, which account for about 40% of the company’s total volumes in India, was 10%. Overall passenger vehicle sales fell 15%, largely because of a 56% cut in the car and van business.
Commercial vehicles too saw some pain, declining 17%.
Worryingly, medium and heavy CVs saw a sharp fall of 52% to 417 units, while light commercial vehicles saw a decline of only around 15%.
“The headwinds faced by the automotive industry continue as a result of subdued consumer sentiment, triggered by various factors,” said Veejay Ram Nakra, Chief of Sales and Marketing, Automotive Division, M&M Ltd.
“The industry needs stimuli to help revive consumer demand and conversions. We hope that the overall buying sentiment will improve in the run-up to the festive season and with the monsoon turning out to be better than initially anticipated.”
In the Passenger Vehicles segment (which includes UVs, Cars and Vans), Mahindra sold 16,831 vehicles in July 2019, compared to 19,781 vehicles in July 2018.
In the Commercial Vehicles segment, the company sold 15,969 vehicles in July 2019, as against 19,284 vehicles in July 2018. In the Medium and Heavy Commercial Vehicles segment, Mahindra sold 417 vehicles for the month.
Exports for July 2019 stood at 2,668 vehicles. The company’s Auto Sector overall sales (Domestic + Exports) stood at 40,142 vehicles in July 2019, compared to 47,199 vehicles during July 2018.