Mahindra car sales dip six percent in February 2015

Mahindra car sales have fallen six percent in February 2015 as car prices rose after the roll back in excise duty benefits in January. Since Mahindra has a predominantly SUV driven portfolio that gets the worst hit with the roll back, an increase of six percent, demand for SUVs has fallen. Add to that, no respite in the recently announced union budget and Mahindra is looking at a tough upcoming year till GST comes into play in April 2016.

Mahindra sold 18,103 units in February 2015, 1,205 units lesser than the corresponding period last year. Speaking on the monthly performance, Pravin Shah, Chief Executive, Automotive Division, Mahindra and Mahindra said, “The auto industry has not seen any major changes in the Union Budget 2015-16. However looking at the overall budget proposals including planned spend on infrastructure and social reforms, we expect positive sentiments going forward. Further, with an expected revision in lending rates in the RBI policy in early April, the industry should see better times ahead.”  

Year to date sales have fallen eight percent with one month left in the financial year to go. Mahindra has sold 1.89 lakh units this year compared to 2.06 lakh units in the corresponding period in FY 2013-14.