Mahindra reports best-ever monthly wholesale of 64,486 vehicles in September

M&M draws aggressive 6-year plan for auto and farm equipment segments

Driven by strong demand for their SUVs, Mahindra & Mahindra on Monday reported all-time highs of 64,486 vehicles in September, a double jump from the same period last year.

The Mumbai-based auto major had shipped a total of 28,112 passenger and commercial vehicles in domestic and international markets by September 2021.

Last month, the company posted its highest-ever monthly sales of SUVs (SUVs) with 34,262 units, doubling from 12,863 units in September 2021.

In an interaction with PTI, Mahindra & Mahindra President (Automotive Division) Veejay Nakra said September turned out to be a record month for the company in terms of total volumes and SUV shipments.

He noted that the overall popularity of SUVs along with strong demand for the company’s latest products led to record shipments for the automaker last month.

“Even in the midst of COVID-19, while the passenger car industry was down, SUVs had reported single-digit growth. The segment continued to grow well last year and this year showed growth of about 40 percent. So SUVs remain strongest growing segment in the overall passenger car industry,” said Nakra.

The company’s products such as Scorpio-N, XUV700, Thar, Bolero Neo and even Scorpio Classic have received a strong response in the market, he said.

“We’ve had some blockbuster product launches over the past few years…the company has a very strong order book of over 2.6 lakh open bookings…so overall it’s the combination of massive industry growth (SUVs ), coupled with our ability to launch a number of blockbuster products last year,” said Nakra.

When asked about chip supply, he noted that from an industry perspective, all OEMs are managing their supply chains, especially semiconductors, in a relatively better way compared to last year.

“There have been a lot of actions like alternative sourcing from open markets, whether it’s bringing in new suppliers or redesigning the products… so different things have been tried…” said Nakra.

He added that despite all these steps, there is still a structural gap between the supply and demand of automotive-grade semiconductors, which will persist for some time to come.

“I think while the worst is behind us, the reality is we still have to sort this out,” Nakra said.

Asked if the improved deliveries would help the company reduce wait times for models such as Scorpio and XUV700, he said: “That is our top priority and the biggest challenge we are all working on. But the reality is that every month we continue with get higher bookings than we can deliver.

“Brands like Scorpio-N, Scorpio Classic, some of these brands are still getting higher bookings than we can deliver.”

Turning to the business outlook, Nakra said that despite some headwinds such as rising interest rates and less rain in certain states, overall demand is expected to remain robust.

(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content was automatically generated from a syndicated feed.)