Mahindra an esteemed Indian auto enterprise has noted a 13% sale decline in November. It managed to sell 34,292 pieces against 39,254 units sold in the corresponding year. The domestic sale outcome noted a dip of 11% with the sale of 32,100 units against 36,261 units sold a year ago.
Mahindra Rise New Logo
The company’s main area of specialization is the sport utility vehicle (SUV) segment, it however could not sustain the weakened market environment, its best sellers Bolero, Xylo, XUV500 and Scorpio failed to attract a large crowd and so did Verito sedan. The passenger vehicle market on the whole recorded a sale loss of 18%.
The profit outcome of the commercial vehicle segment has witnessed a loss of 3%, with the sale of 12,748 units against 13,168 units sold a year ago. Mahindra could not gain significant profit momentum in export market as well and recorded a 27% decline, contributed by the sale of 2,192 units, lower to 2,993 pieces sold in the corresponding period.
The chief executive of the international operations and automotive division of Mahindra and Mahindra, Pravin Shah commented stating, ‘’there hasn’t been a momentous improvement in the auto industry, and the demand continues to remain listless contributed by factors such as high interest rates and weakened customer sentiment levels.’’
The Government of India had earlier announced of its plan to extent the excise reduction policy till the end of December, and going by the weakened customer sentiment caused by the slow moving improvement in market environment, Shah is betting on the Government’s decision to extent the excise lowering policy beyond the month of December.
Despite the company not make profits, there are creditable outcomes and there has been a considerable demand for the new generation Scorpio and the four wheel commercial vehicle segment has attracted better sales. It has been a turbulent month for Mahindra; the company is faced with a higher level of competition. So many launches have happened in the year 2014, across all genres such as hatchbacks, sedans, compact sedans, sport utility vehicles and multipurpose vehicles.
Mahindra has not been in the limelight of new launches, not to the level of its competitors. The company has however strategized the design and machine power of its new launches effectively, a few months ago, the firm launched the next generation Scorpio, which sports contemporary exterior architecture, different from the rugged fashion statement of its predecessor. The new generation Scorpio has done fairly well in 2014 November.
There is also a new Bolero car to watch out for christened U301, like the new generation Scorpio, it too comes with a more contemporary fashion statement, and Mahindra is developing a S101 SUV car as well, and the manufacturing process is taking place on a joint partnership basis with Ssangyong.
The future does look promising for Mahindra, with S101, U301 and new generation Scorpio. The market condition seems to move towards the stabilization point. In October the value of wholesale price index inflation dipped to 1.77% which is the lowest in five years, a major reduction leap from 2.38% encountered during the previous month which is a 5.52% fall.