Mahindra & Mahindra Reports 16% Increase in Auto Sales for September 2024
Mahindra & Mahindra Ltd. (M&M) announced impressive auto sales figures for September 2024, achieving a total of 87,839 vehicles sold, marking a 16% year-on-year (YoY) increase from 75,604 units sold in September 2023. This robust performance highlights M&M’s continued growth in the automotive sector, driven by strong demand for passenger vehicles and commercial vehicles.
Passenger Vehicle Sales Surge
In the domestic market, M&M’s Passenger Vehicles (PV) sales reached 51,062 units, reflecting a remarkable 24% growth compared to 41,267 units sold in the same month last year. The company reported a total of 52,590 units sold in the utility vehicles segment, including exports. This upward trend is expected to continue as M&M gears up for the festive season, with the opening of bookings for the much-anticipated Thar RoXX on October 3.
Commercial Vehicle Sales Experience Positive Growth
M&M also saw a 6% increase in total Commercial Vehicles (CV) sales, reaching 33,750 units in September 2024, up from 31,918 units YoY. The growth in both passenger and commercial vehicles signifies M&M’s strong position in the competitive automotive market.
Tractor Sales Growth Continues
In addition to its automotive division, M&M’s Farm Equipment Sector (FES) reported a 2% increase in total tractor sales, with 44,256 units sold last month compared to 43,210 units YoY. Domestic tractor sales grew by 3%, reaching 43,201 units, up from 42,034 units in September 2023. However, exports for the month experienced a 10% decline, dropping to 1,055 units from 1,176 units YoY.
Positive Outlook for the Farming Sector
Hemant Sikka, President of the Farm Equipment Sector at Mahindra & Mahindra, attributed the positive tractor sales to favorable monsoon conditions, which have led to a 7.5% increase in rainfall over the long-period average (LPA). This has significantly aided in Kharif sowing across various crops. With reservoir levels now 13% higher than LPA, the prospects for a strong Rabi crop look promising. Given the anticipated robust demand for tractors driven by positive rural sentiments and upcoming festivals, M&M is well-positioned for continued growth in the farm equipment sector.
M&M Stock Performance
Following the announcement of its September auto sales data, M&M’s share price saw a notable uptick, increasing by over 1%. The stock gained as much as 1.56%, reaching ₹3,144.60 per share on the Bombay Stock Exchange (BSE). Over the past month, M&M shares have rallied more than 11%, and year-to-date (YTD), the stock has surged by over 80%, effectively doubling investors’ returns with a remarkable 101% increase in the past year.
As of 9:55 AM, M&M shares were trading 0.96% higher at ₹3,125.95 apiece on the BSE. With strong sales figures and a positive market outlook, M&M continues to solidify its position as a leader in the automotive and farm equipment sectors in India.
The recent sales data reflects Mahindra & Mahindra’s effective strategies and strong consumer demand in both the automotive and farming sectors. With the festive season approaching, M&M is poised for continued success, making it an attractive option for investors looking for growth opportunities in the market.
