M&M Dec sales fall 10%; tractor sales jump 25% YoY to 22,417 units

M&M’s exports rose 3 percent to 2,210 units from 2,149 units, YoY.

M&M’s commercial vehicle sales declined significantly during the month. The sales of LCV fell over 13 percent to 13,930 units from 16,018 units YoY while three-wheeler (including electric 3Ws) sales plunged 47 percent to 2,865 units.

“Our overall sales have been affected due to the continuing supply chain challenges related to the constantly changing global environment, more specifically the supply shortage of micro-processors (semiconductors) used in Electronic Control Unit (ECUs). Demand continues to remain strong even after the festive season and as we get into the new year,” said Veejay Nakra, Chief Executive Officer, Automotive Division, M&M.

Meanwhile, M&M’s farm equipment segment registered total sales growth of 25 percent in December 2020 at 22,417 units as compared to 17,991 units in December 2019.

Domestic tractor sales during the month were at 21,173 units, as against 17,213 units YoY while exports for the month stood at 1,244 units.

“The wholesale volumes continued to be strong fueled by restoration of channel inventory post the festive season, announcement of hike in tractor prices by major OEMs and anticipation of sustained demand on the back of higher Rabi acreage, GoI support in Kharif procurement & rural development schemes. In the exports market, we have sold 1,244 tractors, a growth of 60% over last year,” said Hemant Sikka, President - Farm Equipment Sector, Mahindra & Mahindra.

Earlier during the day, Mahindra & Mahindra announced that the company has called off its automotive joint venture with Ford Motor Company due to the challenges caused by the COVID-19 pandemic.

Ford, Mahindra call off auto joint venture; decision taken due to changes in global economy

The company said in a statement that the decision was driven by changes in the global economy over the last 15 months, causing both to reassess their capital allocation priorities.

This decision will not have any impact on the company’s product plan, M&M said.

At 12:00 pm, the shares of M&M were trading 2.28 percent higher at Rs 737.05 apiece as compared to a 0.20 percent gain in the benchmark Sensex.