Even as many other auto makers have been reporting reasonably good sales in November 2014, Mahindra and Mahindra and Bajaj Auto remain on a sticky wicket.
The M&M stock has so far lost almost 5 per cent since yesterday, after disappointing sales in both tractor and utility vehiclesin November 2014.
Thanks to the high base of the previous year, end of the festival season, delayed rains, low yields and low crop prices prevailing currently, M&M recorded a 36 per cent fall in domestic tractor sales last month compared to November 2013. Its utility vehicles too have been having a bad run in recent times.
The linking of diesel prices to market rates and the shift in demand to compact utility vehicles such as EcoSport and Duster have been affecting the company. The company’s UV sales have dropped by 18 per cent last month, over November 2013. Since April this year, UV sales have so far dropped by 8 per cent.
Bajaj Auto too continues to underperform listed peers such as Hero MotoCorp and TVS Motors. The stock has lost almost 2 per cent today after it reported a 6 per cent drop in domestic motorcycle sales in November 2014, over the previous year. While its premium brand – the Pulsar – has been doing well, the company has been losing market share in the Discover brand.