Mahindra & Mahindra Ltd is on an overdrive if the sales figures for all auto (passenger, commercial and exports) and tractor sales released for February 2021 is an indicator. The company registered a 41% increase with the sale of 15,380 passenger vehicles in February 2021 as against 10,675 sold during the same period last year.
Veejay Nakra, CEO, Automotive Division, M&M LTd., said that demand continues to be buoyant for SUVs and pick-up trucks, and added that the order pipeline was robust. However, he tempered the optimism with caution. “Supply of semi-conductors, as we all know, is a global issue and it’s likely to continue for another three to four months,” said Mr Nakra.
M&M Ltd.’s farm equipment sector also has reason to rejoice. Domestic sales of tractors also showed an upwards trend with a growth of 24% over the same period the previous year. “We have sold 27,170 tractors in the domestic market during February 2021,” said Hemant Sikka, President, Farm Equipment Sector.
With Rabi sowing at an all-time high, supported by healthy reservoir levels and higher liquidity among farmers on account of the timely and robust procurement of Kharif crops, the tractor demand also continues to be robust.
“Given the all-time high estimates of Rabi production and strong rural cash flows, the outlook for the industry continues to be positive,” added Mr Sikka. Tractor exports also displayed a positive trend, with a 43% increase (976 tractors) over February 2020.
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