Mahindra's SUV sales to dealers dip for first time in over 3 years ahead of GST overhaul

Despite the drop in August, Mahindra has defied a wider industry slowdown in the world's third-largest car market, backed by strong demand for its newer SUVs and EVs.

Mahindra & Mahindra Ltd reported its first monthly sales decline in over three years in August, as the automaker moderated dispatches to dealers while awaiting a government decision on lowering consumption tax.

The maker of the Scorpio SUV said its sport utility vehicle sales fell 9% last month, though volumes remain 15% higher so far in the fiscal year ending March 2026.

In the Utility Vehicles segment, Mahindra sold 39,399 vehicles in the domestic market, a de-growth of -9% and overall, 40,846 vehicles, including exports. The domestic sales for Commercial Vehicles stood at 22,427.

Nalinikanth Gollagunta, CEO, Automotive Division, M&M Ltd said, “August witnessed relatively robust demand in the SUV segment amidst anticipated GST rate changes. This month, Mahindra reported 7.4% YoY growth in PV Vahan registrations. In our commercial vehicles segment, Vahan registrations grew by 16% YoY (<7.5T LCV category)."

"With the final GST announcement approaching, we consciously decided to bring down the wholesale billing to minimize the stock being carried by our dealers. We look forward to the GST rationalisation, which would be a demand driver through the festive season."

"Total vehicle sales stood at 75,901 units, marking a flat growth compared to the same period last year, with SUV sales of 39,399 units recording -9% YoY decline.”

Analysts at Nomura noted that dealers stocked conservatively in August ahead of the anticipated GST cut, avoiding high-cost inventory, while buyers postponed festive purchases in expectation of lower prices, news agency Reuters reported.

The GST Council is scheduled to meet later this week to consider what could be the most significant overhaul of the indirect tax system since its rollout, following Prime Minister Narendra Modi’s announcement last month.

Despite the August dip, Mahindra has outperformed a slowing auto market, supported by demand for its newer SUVs and electric vehicles.

*With Agency Inputs