Mahindra & Mahindra reported its strongest growth yet in the COVID-19 era after sales in November surpassed expectations, with strong numbers coming in from the tractor department.
The company reported a whopping 55% jump in tractor sales for November, compared to just 2% in October.
Similarly, sales of utility vehicles such as XUV500 jumped 27% in November compared to the same month of last year. In October, they had risen by just 3%.
It should be kept in mind that the festival season came late by about two weeks this year. While the peak of festival sales happened in October last year, it shifted slightly to November this year.
Total utility vehicle sales were at 17,971 in November this year, up 27% from 14,161 in the same month of last year. Most of the increase is likely to be on account of the sales of the Thar 2020 model.
In October, UV sales were at 18,317 this year, compared to 17,785 last year.
Veejay Nakra, Chief Executive Officer, Automotive Division for M&M said the double digit growth in SUVs was aided by a robust festive demand.
“Given strong rural growth and signs of improvement in economic activities, we are hopeful to see this positive momentum continue post the festive season,” he said.
As for tractors, total domestic sales were 31,619 in November this year, compared to 20,414 last year.
In October, tractor sales in India were at 45,588 this year, compared to 44,646 last year.
“Demand continues to be robust fueled by an excellent festive season with retails being strong during Dhanteras and Diwali. Rural sentiments remain positive on account of higher Kharif output and Rabi sowing,” said Hemant Sikka, President – Farm Equipment Sector.
“Procurement operations for kharif are on full swing which would keep the rural cash flows healthy. Government’s focus on rural growth continues and outlay under Atmanirbhar Bharat 3.0 will provide further fillip to the industry. In the exports market, we have sold 1,107 tractors, a growth of 79% over last year.”
There was improvement in the sales trends in commercial vehicles too, though they continued to remain more impacted than passenger vehicles and tractors.
The ultra-sensitive category of CVs with carrying capacity of 3.5 tons and above reported a 31% decline in November, though that was an improvement from the 37% decline posted in October. For first seven months of the financial year, they’re still down 79%.
Smaller LCVs, meanwhile, swung to growth for the first time after COVID-19 hit in April.
“We have witnessed double digit growth in Pick-ups. Our small commercial vehicle brands Bolero Pik Up, Supro and Jeeto continue to see strong demand in both rural and urban markets,” Nakra added.