For the July quarter, total utility vehicle sales at Mahindra & Mahindra fell by 7% compared to a year ago to 17,879, even as sales of cars and vans continued avoided such a decline.
Car and van sales were at 1,902 units, up 1% on year.
However, the continued decline in the UV vehicle segment ensured that total passenger vehicle sales were down 6% on year in July.
However, the company saw a sharp pickup in commercial vehicle sales in July.
CV sales rose by 28% to 19,284 units. In July of last year, CV sales had risen by 14% compared to 2016.
Most of the volumes, however, came from light commercial vehicles, with a carrying capacity of less than 3.5 tons. These saw a 29% jump in sales to 17,785 units in July 2018.
Three-wheelers too jumped 47% to 5,540.
Addressing the declining sales of SUVs, Rajan Wadhera, President of the company’s Automotive Sector expressed confidence in the upcoming Innova-rival Marazzo.
The pricing of the 1,600cc car has not been revealed, but it is expected to be significantly cheaper than Toyota Innova, which rules the segment right now. The car will have both 7 and 8 seater options, depending on the middle row configuration.
“As we move into the festive season, we are confident of seeing a turnaround in the overall buying sentiment, coupled with the just announced Mahindra Marazzo, which is scheduled for launch next month,” Wadhera said.
He said the industry has faced uncertainties due to the recent truckers strike and “sluggishness on the retail front” which, he said, impacted the passenger vehicle segment.
“Demand for our commercial vehicles continues to be strong and the newly launched Furio range of ICVs augurs well for our M&HCV business,” he added.
The company’s domestic sales touched 44,605 vehicles during July 2018, registering a growth of 12%.
In the commercial vehicles segment, the company sold 19,284 vehicles in July 2018, registering a 28% growth.
In the Medium and Heavy Commercial Vehicles segment, M&M sold 866 vehicles for the month, a growth of 32%.
Exports for July 2018 stood at 2,594 vehicles, a growth of 31%.