Indian vehicle manufacturer Mahindra and Mahindra reported a more than 50 per cent drop in passenger vehicle sales in May compared to the previous month. The decline in sales is due to the Covid-19 Lockdown measures imposed in several states in India, which also affected the auto industry.
According to a statement released by the Mahindra Group, the car manufacturer was only able to sell 8,004 passenger vehicle units last month. This is down by almost 53% compared to April, when the carmaker sold 18,285 passenger vehicles.
However, the figures may appear rosy with data from Mahindra passenger vehicle sales compared to May last year. Based on the year-on-year parameter, Mahindra has more than doubled its sales in the passenger vehicle segment last month.
Among the passenger cars sold by Mahindra last month, usable vehicles such as the Thar, XUV300 and other SUVs accounted for nearly 97 per cent of monthly passenger vehicle sales. Mahindra sold 7,748 available vehicles in May, up from 3,745 units in the same month last year.
In May of this year, as well as last year, Lockdown restrictions were imposed in many parts of India. However, according to Mahindra, May this year has been much better than last year as he believes the market is slowly recovering.
Veejay Nakra, CEO of Mahindra and Mahindra Ltd, said: “We are seeing strong growth for our entire product portfolio. Thar has strong reserves, despite long waits. The XUV300 has been a huge success and continues to see high demand. “Our power brands (Scorpio and Bolero) are doing well. With cases falling and markets gradually opening up, we anticipate a strong rebound in demand. We are partnering with our partner suppliers to manage the supply chain. To meet issues and market demand.”
However, the car manufacturer recently announced that it could take another two years for things to get back to normal. Mahishra CEO Anish Shah said, “Returning to full normalcy will depend on vaccines … (otherwise) we will always be afraid to come the next wave and stop things again.”
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