Mahindra has stopped production of all its vehicles after recording a decline for two consecutive months to clear up stocks already built up.
The Indian automotive market has not been doing particularly well since the beginning of this year. The month of April recorded the lowest sales in the passenger vehicles segment in the last eight years, witnessing a decline of 17.07%. The same trend continued in the month of May as well. All major manufacturers again reported a decline in sales for May.
Mahindra too has had to witness low sales for the last couple of months, so much so that they have had to shut down production of their vehicles for up to 13 days. This decision comes in the face of low demand for cars and Mahindra needed to clear up the stocks of vehicles already built up for so many days.
The Indian UV maker has issued a notification on the Bombay Stock Exchange (BSE) saying, “The Company at its Automotive Sector and Farm Equipment Sector, and Mahindra Vehicle Manufacturers Limited, a wholly owned subsidiary of the Company (‘MVML’), as part of aligning its production with sales requirements, would be observing ”No Production Days” ranging between 5 – 13 days in various plants of the Company and MVML during the first quarter of the Financial Year 2019-2020. The Management does not envisage any adverse impact on the availability of vehicles in the market due to the adequacy of vehicle stocks to serve the market requirements.”
Mahindra & Mahindra sold a total of 43,721 units of vehicles in April 2019 compared to 48,097 units of vehicles sold in April 2018, thus recording a decline of 9%. In the Commercial Vehicles segment, Mahindra sold 17,321 units of vehicles in April 2019, as against 18,963 units of vehicles sold in April 2018, again marking a drop in sales by 9%.
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In the Medium and Heavy Commercial Vehicles segment, Mahindra sold 474 vehicles for the month of May. Exports for April 2019 stood at 2,118 vehicles. In May 2019, the carmaker’s total sales stood around 45,421 units of vehicles as against 46,848 units of vehicles sold during May from last year. That, again is a decline of 3%. However, new models like the XUV300 and the Marazzo have been received rather well in the Indian market. Mahindra will also introduce automatic variants of both these cars soon and that might just improve sales for Mahindra in the coming times.