M&M August auto sales zoom 19%, stock soars

Sales of M&M vehicles zoomed in August

Shares of Mahindra and Mahindra Limited (M&M) gained nearly 2 percent to Rs 1600 on September 1 after the company reported auto sales of 70,350 vehicles in August, registering a growth of 19 percent from 59,000 units in the same month last year.

M&M’s domestic passenger vehicle sales in August rose 25 percent in the month to 37,270 units from 29,852 units from the year-ago period, the company said in an exchange filing on September 1.

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In the Utility Vehicles segment, M&M sold its highest-ever SUVs 37,270 vehicles in the month, in the domestic market, and overall, 38,164 vehicles, including exports.

The company's domestic sales for commercial vehicles or CVs stood at 23,613 units.

"While demand for our key SUV brands continues to be strong, we are keeping a close watch on the availability of semi-conductors and select parts, for sustained and smooth scaleup," Veejay Nakra, President of the automotive division said in a press release statement.

However, the overall exports in August 2023 declined 17 percent to 2,423 units from 2,912 units in August 2022.

As far as the farm equipment sector is concerned, M&M saw a slight 1 percent rise in total tractor sales for August at 21,676 units. The company sold 21,520 tractors in August last year.

"Despite a 9 percent monsoon deficit at the end of August, Kharif sowing is largely on track and has shown an improvement over last year for all key crops except pulses. Terms of trade continue to be favourable for the farmer, with inputs inflation cooling off and crop prices holding firm. With the upcoming festive season, we expect tractor demand to grow in the coming months," Hemant Sikka, President of the Farm Equipment Sector said.

Domestic tractor sales during the month rose 3 percent to 20,647 units as against 20,138 units, YoY, while exports of tractors declined 26 percent YoY to 1,029 units.

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