Mahindra tractor exports decline 7% in July
The Dollar Business Bureau
Mahindra & Mahindra Ltd (M&M) has registered 7% decline in tractor sales in July 2016. The Farm Equipment Sector of the $17.8-billion Mahindra Group sold 1,101 tractors during July 2016, against 1,187 tractors in the same month last year.
Within the country, the company has reported 15% growth in tractor sales at 16,452 units in July this year, as against 14,273 units during the corresponding month last year. The overall tractor sales including domestic sales and exports rose 14% at 17,553 units in July 2016, when compared to 15,460 units in the same month previous year.
With normal rainfall and improved spread across India in July, Kharif sowing has been more than last year, said Rajesh Jejurikar, President and Chief Executive of Farm Equipment and Two Wheeler Division of the company. An improved agricultural output would lead to higher tractor demand in the future, he said in a statement.
In the month of July 2016, M&M auto exports have increased 16% at 4,153 vehicles, against 3,565 in the corresponding month previous year. The company’s domestic auto sales registered 14% growth at 39,458 vehicles when compared to 34,652 vehicles during same period a year ago. During the month of review, the passenger vehicles segment has witnessed 20% growth, while the commercial vehicles segment has seen 8% growth.
According to M&M Automotive President and Chief Executive Pravin Shah, “the advent of a good monsoon has brought in positive sentiment for the economy. That is somewhat reflected in the performance of the company.” Mahindra’s growth is being driven by the various product launches during the last financial year. These new vehicles have been designed based on the customers’ requirements, he said.
In spite of various regulatory challenges, M&M has achieved 14% growth in auto sales during July 2016. With 22% up surge in medium and heavy commercial vehicles segment as well as 16% rise in exports, the company is hopeful of a positive outlook during the rest of the financial year, he added.