Mahindra car sales dip 28 percent in December 2013

India’s largest SUV manufacturer Mahindra is having a dismal sales year compared to a strong 2012-13. The company sold 39,611 units in December 2013, that’s 5686 units or 13 percent less than the same month last year. 

Passenger car sales stood at 16,436 units for the month, a 28 percent dip from December 2012. From April to December 2013, Mahindra has sold 166,622 units, 18 percent less that the same period last year. New cars launched last year like the Quanto have failed to make a mark and the Verito Vibe too isn’t doing too well. After huge demand for the XUV 500 in the beginning, sales have hit a plateau around the 2,500-3,000 mark. The Bolero and Scorpio continue to be the Company’s best selling models. Sales of commercial 4-wheelers like the Maxximo, Gio, Genio and Bolero Pick up have gone up 5 percent in December and 2 percent overall. 

While 3-wheeler sales are in the negative by 6 percent for this year, it grew 8 percent at 5,606 units in December 2013 showing signs of revival. Mahindra Trucks and Buses (MTBL) has been the worst hit of all verticals at Mahindra vehicles, falling 30 percent in December and 33 percent year to date. The entire commercial vehicle industry is facing a tough time and poor sales figures can be seen across all manufacturers in the CV industry. Lastly, Mahindra’s exports have dipped 9 percent in December and 14 percent year to date.

After seeing a surge in sales in the previous year, when the company became the third largest manufacturer in India overtaking Tata Motors, it was poised for an equally strong year ahead. But the excise duty hike on SUVs from 27 to 30 percent in this year’s budget has hit Mahindra hard.