Mahindra & Mahindra shares down after decline in tractor sales in March 2024
Upstox
2 min read • Updated: April 1, 2024, 1:07 PM
Summary
Mahindra & Mahindra's Farm Equipment Sector (FES) saw a 28% decline in tractor sales for March 2024. Domestic sales during the month stood at 24,276 units, as against 33,622 units in the year-ago period.
Shares of Mahindra & Mahindra were trading in negative territory on Monday after the company released its overall auto sales data for the month of March 2024. While the automaker sold 68,413 vehicles last month, a growth of 4% year-on-year, the sale of its tractors declined as compared to the year-ago period.
The stock was trading at ₹1,917, down 0.22%, on the NSE at 12:28 pm. Intraday, the company recorded a high and low of ₹1,963 and ₹1,891, respectively.
According to a regulatory filing, Mahindra sold 40,631 vehicles in the domestic market in the utility segment. It is an increase of 13% against 35,976 vehicles sold in March 2023. Overall, the company sold 41,161 cars, which also includes exports.
The domestic sales for commercial vehicles (CV) stood at 20,930.
Veejay Nakra, President, Automotive Division at Mahindra & Mahindra, said, "We ended the financial year F24 on a positive note with Mahindra pickups crossing 2 lakh units during the year, which is the highest ever for any commercial vehicle in the load segment in India. In March, we sold a total of 40,631 SUVs, with a growth of 13% and 68,413 total vehicles, a 4% growth over last year."
The company saw a 28% decline in tractor sales for March 2024. Domestic sales during the month stood at 24,276 units, as against 33,622 units in March 2023, according to Mahindra & Mahindra's Farm Equipment Sector (FES).
Total tractor sales, including exports, were at 26,024 units, as against 35,014 units for the same period last year.
Hemant Sikka, who is the president of the company's FES unit, said that the forecast of a normal south-west monsoon month this year is likely to boost tractor demand in the coming months,
"Government announcement of increased advance estimate of horticulture production and Rabi wheat output higher than last year is expected to bring positive sentiments among farmers," he added.
Founded in 1945, the Mahindra Group is one of the prominent players in farm equipment, utility vehicles and is the largest tractor company in the world by volume.