Car Sales March 2020: Coronavirus Disrupts Mahindra's BS6 Ramp-Up Plan, Sales Drop By 88%

Last month Mahindra's total sales stood at 7,401 units, registering a decline of 88 per cent, as compared to the 62,952 vehicles sold during the same month last year. This was a due to the impact of the coronavirus outbreak.

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Mahindra's domestic sales fell by 90 per cent, at 6,130 units while exports dropped by 68 per cent

Highlights

  • Mahindra's total sales in March 2020 stood at 7,401 units
  • The company's domestic sales took a bigger hit with a decline of 90%
  • In March 2020, Mahindra's exports dropped 68 per cent at 1,271 units

Mahindra today announced the sales numbers for the month of March 2020, which took a massive dive of 88 per cent. Last month the company's total sales stood at 7,401 units, compared to the 62,952 vehicles sold during the same month last year. The company's domestic sales took an even bigger hit with a decline of 90 per cent, at 6,130 units against the 59,012 vehicles sold by the company in March 2019. As for the company's exports, last month it dropped 68 per cent at 1,271 units, as compared to the 3,940 vehicles exported during the same period in 2019.

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The company's poor performance is a direct result of the coronavirus outbreak and the lockdown issued by the government to contain it. The company has suspended production at its Mumbai, Pune and Nagpur plants, and with the lockdown, Mahindra dealers have lost 1/3rd of sales days in March. The company says that the COVID-19 pandemic has also disrupted its plan to ramp-up production of BS6 vehicles.

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The Mahindra's domestic sales saw a decline of 90 per cent, at 6,130 units, as against the 59,012 vehicles sold in March 2019

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Commenting on the performance, Veejay Ram Nakra, Chief Executive Officer, Automotive Division, M&M Ltd. said, "Our performance in March has been muted on account of the impact of the current lockdown related to COVID-19 and the disruption in our BS6 ramp-up plan. The latter was planned between February and March but was affected due to the challenges of parts supply from global and local suppliers. We have been able to clear our BS6 inventory, but for fewer than 100 vehicles. However, there are many vehicles that are sold, but not yet registered because of the closure of RTOs."

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In the Passenger Vehicles segment, which includes SUVs, MPVs, Cars and Vans, Mahindra's total sales stood at 3,384 vehicles in March 2020, a decline of 88 per cent, as compared to 27,646 vehicles sold in March 2019. As for the Commercial Vehicles segment, the carmaker sold 2,325 vehicles in March 2020, witnessing a de-growth of 90 per cent, as against 24,423 vehicles sold in March 2019.

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