Mahindra & Mahindra Reports 24% Growth in SUV Sales for September 2024

Mahindra & Mahindra (M&M) reported a robust sales performance for September 2024, with a 24% surge in SUV sales compared to the previous month. The automaker's overall auto sales, including exports, stood at 87,839 units, reflecting a 16% year-on-year growth. The positive sales figures exceeded analysts' expectations of 80,167 units for the month.

M&M’s SUV sales in the domestic market hit 51,062 units in September, marking a 24% increase over the same period in 2023. This year, the company has seen a consistent 21% growth in SUV sales. In the broader utility vehicles (UV) segment, Mahindra sold a total of 52,590 vehicles, including exports.

Strong Performance in Commercial Vehicles and Exports

The company's domestic sales for commercial vehicles reached 23,706 units in September 2024, while exports stood at 3,027 units, representing a 25% growth compared to the previous year. Mahindra continues to expand its presence in the commercial vehicle sector, backed by strong market demand and the launch of innovative models.

Introduction of VEERO in LCV Segment

Last month, M&M launched the VEERO in the light commercial vehicle (LCV) segment under 3.5 tons. VEERO is built on India’s first multi-energy modular CV platform and has garnered positive feedback from the market. According to Veejay Nakra, President of Mahindra’s Automotive Division, VEERO offers industry-leading features, including best-in-class mileage, superior performance, and enhanced safety features, setting new benchmarks in the LCV segment.

Nakra also announced that M&M would begin taking bookings for the highly anticipated Thar RoXX on October 3, just in time for the festive Navratri season.

Tractor Sales See Modest Growth

In the Farm Equipment Sector (FES), Mahindra sold 43,201 units of tractors in the domestic market, up 3% compared to 42,034 units in September 2023. Including export sales, the total tractor sales stood at 44,256 units for the month. However, these figures came slightly below analysts' expectations, which projected sales of 45,400 units for September.

Hemant Sikka, President of Mahindra’s Farm Equipment Sector, attributed the growth in tractor sales to favourable monsoon conditions. “Monsoon rainfall has increased by 7.5% over the Long Period Average (LPA), resulting in improved Kharif sowing for most crops, excluding cotton,” said Sikka. He added that reservoir levels have recovered, standing 13% higher than the LPA, indicating a promising Rabi crop season.

Sikka also noted that rural sentiments are positive, driven by a strong Kharif crop, expectations of a bumper Rabi crop, and favourable terms of trade for farmers. He anticipates strong demand for tractors in the coming months, especially with the festive season approaching.

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Following the strong sales report, Mahindra & Mahindra shares were trading 1.35% higher at ₹3,138.05 on the BSE at 10:20 AM on October 1, 2024.