Homegrown Mahindra & Mahindra saw domestic sales decline

Homegrown Mahindra & Mahindra saw domestic sales decline

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Homegrown Mahindra & Mahindra saw domestic sales decline
24.29 per cent to 29,814 units last month as compared with 39,383 in November 2015.
“While we expected an improved auto industry performance on the back of festive season and other positive parameters such as rural demand and interest rates softening, the sudden announcement of demonetisation has brought in an immediate disruption and uncertainty,” M&M Chief Executive (Auto Division) Pravin Shah said.
Although, demonetisation is a good and welcoming step in the mid to long term, this has dampened overall sentiments leading to postponed buying thereby resulting in a major dip in volumes during November, he added.
“This is significant as the automotive industry had just started experiencing stability post a long and tough period of uncertainty,” Shah said.
Similarly, Ford India saw its domestic sales decline last month. The company sold 6,876 units last month, down 21.62 per cent, from 8,773 units in the same period a year ago.
“While the macro-economic indicators continue to be positive, the auto industry does face short-term headwinds given the recent demonetisation drive,” said Anurag Mehrotra, executive director, Marketing, Sales & Service, Ford India.
Honda Cars India saw its sales drop to 8,029 units in November, down 45.42 per cent, from 14,712 units in the same period of previous year.
“The November month saw major disruptions in the market due to the on-going effects of demonetisation and cash crunch.
The consumer sentiment was low and footfalls and enquiries at the dealerships also slowed down during the month,” Honda Cars India President and CEO Yoichiro Ueno said.
On the two-wheeler front, India Yamaha Motor reported 20 per cent increase in domestic sales at 51,106 units in November.
Honda Motorcycle and Scooter India sales growth remained flat at 3,25,448 units in November as compared to 3,26,466 units in same period of last year.
Abdul Majeed, Partner – Price Waterhouse and an auto expert said: “Demonetisation will have significant negative impact at least in the next two to three months across the board in the automotive sector especially two wheelers, SUV, luxury vehicles, commercial vehicles.”
The measures government takes next to push economic growth will be the key for automotive sector, he added. PTI MSS
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