In September, Mahindra & Mahindra disclosed a decline in its passenger car business, mainly due to lack of semiconductor supplies. Overall sales fell about 22% year over year, while passenger vehicle sales fell about 12%.
Mahindra sold only 28,112 units last month as compared to 35,920 units sold in the same month last year. Out of all these, only 13,134 passenger vehicles were sold. Mahindra sold 14,857 passenger cars in September last year, which includes Bolero, Scorpio, XUV500, XUV300 and TUV300.
Vijay Nakra, CEO, Automotive Division, Mahindra & Mahindra said, “Problems around semiconductor supply are creating difficulties for the car sector globally.” We have taken several steps to minimize the impact and are trying to manage the issue as effectively as possible.”
Mahindra has released at least two SUVs since September last year, which include the Thar and the Bolero Neo. Despite initial success, Mahindra’s sales volumes last month did not improve as a result of the new SUV. Mahindra is now betting on the XUV700 SUV, which went on sale on Thursday. The XUV700 is expected to hit both the small and three-row SUV categories with a starting price of Rs 11.99 lakh (ex-showroom).
Mahindra’s only saving grace last month was its export numbers. Last month, Mahindra sold 2,529 units from 1,569 units in September last year.