Mahindra’s Auto Sector sales plunge 42% in February as Corona outbreak hits Chinese auto-parts supply
Mumbai: Mahindra & Mahindra Ltd. (M&M)’s February sales plunged sharply by 42% to 32,476 units on weak demand and drop in parts-supply from Corona virus hit China.
The company’s sales in Passenger Vehicles segment (which includes UVs, Cars and Vans) has dropped by 58% to 10,938 vehicles, compared to 26,109 vehicles in February 2019.
Mahindra’s Commercial Vehicles sales drop 25% to15,856 vehicles, as against 21,154 vehicles in February 2019. Meanwhile, in the Medium and Heavy Commercial Vehicles segment, the company has sold 436 vehicles. The company’s exports, during the month, has dropped by 40% to 1,839 vehicles, from 3090 vehicles in February 2019.
“The ramp-down of BS IV vehicle production has been in line with our plan for February. However, because of the unforeseeable challenges on the parts-supply from China, our BS VI ramp-up has been affected. This has resulted in a high de-growth in our billing volume for February and our dealer inventory is, now, under 10 days. Going into March, we anticipate the challenge on parts-supply to continue for another few weeks, before we get back to normalcy” Veejay Ram Nakra, Chief of Sales and Marketing, Automotive Division, M&M Ltd. Said.