Mahindra & Mahindra expects strong SUV demand even after record sales in September

Mahindra & Mahindra Ltd. now leads the SUV segment both by volume as well as revenue share, the management told CNBC TV-18 in an interview.

The company's auto sales were at a record high in September, climbing 129 percent from last year to 64,486 units. With a 19 percent market share, it now leads the SUV market.

In a conversation with CNBC-TV18, M&M's automotive business president Veejay Nakra said that the demand is strong across categories and that it is up to their ability to ramp-up and fulfill that demand.

Nakra also said that the booking pipeline is "extremely strong" across other products besides the Thar, the XUV700, and the recently launched Scorpio-N. Record bookings were seen for the recently launched Bolero Max truck and the Scorpio Classic.

For Mahindra & Mahindra, SUVs continues to contribute more than half of the company's Passenger Vehicle segment.

"From a demand point of view, SUVs will continue to remain strong," Nakra said. When it comes to supply-side headwinds and the shortage of critical components, Nakra said that some of these issues will have  a greater impact on commercial vehicles and passenger cars to an extent.

Nakra believes that the supply-chain issues are still not resolved and continue to be a challenge for most players within the automotive space. "There is a systemic gap between demand and supply, especially for semiconductors," he said.

Aside of SUVs, Mahindra's farm equipment segment also saw its highest-ever domestic monthly sales. The company sold 47,100 tractors in September, a jump of 20.6 percent from the same period last year.