Companies

M&M asks for urgent measures to revive demand

R. Yegya Narayanan Coimbatore | Updated on March 12, 2018 Published on July 01, 2013

Struck by the slowdown in demand, one of the largest vehicle manufacturers having a presence in different market segments Mahindra & Mahindra Ltd has called for "immediate short term measures" to bring back buoyancy in demand.

The company has registered a dip in sales in the passenger vehicle segment, though the four-wheeler CV segment recorded a modest growth in June compared to the same month last year.

In a release giving its June 2013 numbers, M&M said that the passenger vehicle sales, including utility vehicles and Verito, dipped to 17,232 units (19,792 units), a fall of 13 per cent. The sale of three wheelers also fell to 4,303 units (4,836 units).

However, its four-wheeler commercial (passenger and load) vehicles recorded a 5 per cent growth in sales to 13,761 units (13,103 units).

While the domestic sales at 36,207 units marked a 7 per cent fall compared to 38,951 units in June last year, exports fell to 1,885 units (2,371 units), a 20 per cent decline.

Pravin Shah, Chief Executive, Automotive Division of M&M, said the company had "witnessed a de-growth" during June this year amidst an "overall decline in the auto industry". He said the the depreciation of the rupee had led to a spike in fuel prices and the high interest rates and additional duty on SUVs had "further dampened the industry" without bringing any substantial revenue to the Government. He hoped for "some immediate short-term measures" to be implemented by the Government "to bring back buoyancy in demand" that was sorely needed.

The shares of M&M were trading at Rs 961, a loss of Rs 5.55, around 1 pm on the BSE.

Published on July 01, 2013
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