Indian car manufacturer Mahindra and Mahindra reported a decline of 7% in sales of its utility vehicles in April. It sold 18,884 utility vehicles in the month, down by 523 units last year.
Its competitor, Maruti Suzuki, on the other hand, witnessed an increase of 6% in the utility vehicle segment in April, though the company’s overall sales had fallen by 17%.
M&M’s performance in the utility segment is well below from what was seen in previous months. It had sold 25,801 units of utility vehicles in March.
Passenger vehicles segment, which includes both utility vehicles and cars and vans, too witnessed a dip of 9% in April sales to 19,966 .
In the commercial vehicle segment, Mahindra sold 17,321 units, a decline of 9%.
The company reported a whopping decline of 48% in the medium heavy and commercial vehicle segment. The sales of MHCV segment went down to 474 units from 904 units last year. This segment tends to generate higher revenue and profit as there are fewer competitors.
M&M’s performance in the three-wheeler segment was almost flat in April.
On an overall basis, Mahindra’s total domestic sales witnessed a dip of 8% in April, while exports fell 26%.
Including exports, the company’s overall sales fell 9% .
“The ongoing elections has subdued the purchase sentiment during April. This, according to us, is a temporary phenomenon. We believe, following the elections, the auto industry will see a revival in consumer demand. Supported by a normal monsoon, we are confident of seeing higher sales in FY20”, said Rajan Wadhera, President, Automotive Sector, Mahindra and Mahindra.
Headquartered in Mumbai, Mahindra and Mahindra is one of the largest vehicle manufacturers by production in India and the largest manufacturer of tractors in the world.