Mahindra Car Sales in November 2023 Shows 32% Growth

Mahindra SUV sales grew 32% in Nov 2023, totaling 39,981 units. Despite a monthly decline, the year-on-year increase, supply chain challenges, and strategic measures showcase resilience and adaptability.

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Mahindra SUV sales increased by 32% in November 2023, with 39,981 units sold, despite a decrease in domestic SUV sales compared to October 2023.

Highlights:

• The sales of SUV went down 8.5 per cent over the October 2023
• Increase in cumulative sales up by 21 percent year-on-year bases
• Still being faced with supply chain constraints by Mahindra

In the backdrop of a challenging market scenario, Mahindra Auto has reported a notable sales performance for November 2023, with 39,981 SUVs sold. While the figure represented a commendable 32% growth over the same period in 2022, it marked an 8.5% decline from the record-breaking October 2023 sales.

The company's cumulative sales, including the commercial vehicles and exports, stood at 70,764 units, showing a substantial 21% year-on-year increase.

SUV Sales Dynamics:

Mahindra's SUV sales, though witnessing a drop compared to the preceding month, still demonstrated a remarkable annual growth of 32%. November 2023 figures outpaced the sales of the same month in the previous year 2022, reflecting a sustained interest by the consumers in the portfolio of Mahindra's SUV.

The 39,981 units sold contributed to the company's resilient performance despite the industry experiencing a decrease of 8.5% in the sales of the SUV as compared to the October 2023.

Challenges in the Supply Chain:

Veejay Nakra, President, Automotive Division, M&M Ltd., acknowledged the company's success in maintaining a trend of growth, driven by strong demand for their SUVs. However, Nakra also highlighted the supply chain challenges, stating, "While we saw a healthy festive season, we also faced supply challenges on the selected parts during the month. We are keeping a close watch and also taking appropriate steps to reduce the challenges." This acknowledgment also emphasises the impact of the ongoing global supply chain disruptions on the automotive industry.

Commercial Vehicle and Export Performance:

In addition to the SUVs, Mahindra has also reported the sales performance across the commercial vehicles and exports. Commercial vehicle sales for November stood at 22,211 units, reflecting a decrease from the previous month but remained as a significant contributor to the overall sales figure. On the other hand the exports reached 1,816 units, showcasing the global reach of the company and the ability to tap into the international markets.

Year-to-Date Overview:

Mahindra's year-to-date cumulative passenger vehicle sales for the financial year 2024 totaled 2,98,603 units, indicating a substantial 20% increase compared to the same period in the previous financial year. This consistent growth also underscores the ability of the brand to navigate the challenges and also maintain a positive trajectory despite fluctuations in the market.

Accumulation of Orders and Production Progress:

Mahindra has revealed a significant delay of orders for various SUV models, including 2.8 lakh SUVs that are yet to be delivered. The Scorpio family, Thar, and XUV700 are among the key models facing high demand, with long waiting periods that stretch well over a year.

To address this surge in demand, Mahindra has undertaken measures to make progress in the production process. The company is also working towards fulfilling the accumulated orders, with a focus on reducing the long waiting periods for the models that are popular.

Growth in Segment of Commercial Vehicle:

On the commercial vehicle front, Mahindra has reported growth across all sub-segments. The 2 to 3.5-ton light commercial vehicle (LCV) segment still remained the largest seller, with 17,284 units sold – a 7% year-on-year increase.

The three-wheeler range also experienced growth, with 6,568 units sold, marking a robust 26% increase.

The sub-2 tonne LCV segment and the LCV greater than 3.5 tonne and the medium and the heavy CV segment reported a growth in sales of 54% and 12%, respectively.

Conclusion:

In conclusion, Mahindra Auto's November 2023 sales report reflects a dynamic performance, especially in the SUV segment, despite facing challenges in the supply chain.

The annual growth, sustained demand for SUVs, and strategic steps to address production challenges underscores Mahindra's resilience and adaptability in navigating the complexities of the current automotive landscape.

As the company continues to address supply chain constraints and strives to meet the rapidly increasing demand, the coming months will be crucial in determining the standing of Mahindra in the highly competitive automotive market.

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