Homegrown automaker Mahindra has had quite a lot on its plate recently. While it has several new models in its pipeline, Covid-19-induced lockdowns and supply chain issues have kept the company on its toes. As the country goes through a second wave of the deadly virus, automakers such as Mahindra have to do their best to survive. In some cases, such as with Mahindra, the company’s commercial and farm businesses usually do really well. However, in May 2021, even those sectors saw a decline. In fact, Mahindra’s Farm Equipment Sector posted a 5 percent decline year-over-year (YoY).
Meanwhile, Mahindra sold 8,004 units from its passenger vehicles (PV) division in May 2021. Compared to May 2020, when the company sold 3,867 units, last month saw sales going up by 107 percent. Even more interesting, over 97 percent of the overall domestic sales (that’s 7,748 units) came from Mahindra’s utility vehicles (UV) sector. As you may know, the automaker’s UV division holds all of its popular and well-liked models. This includes SUVs such as the Scorpio, Thar, XUV300, XUV500, and Bolero. Then there are others as well – the Alturas G4, Marazzo, and XUV100 NXT. While these may not sell in huge numbers, they are quite important for the brand.
Veejay Nakra, Chief Executive Officer, Automotive Division, Mahindra & Mahindra Ltd., had this to say,
“We are seeing a strong growth momentum for our entire product portfolio. The Thar is clocking robust bookings, despite extended waiting periods. XUV300 has been a tremendous success and continues to see strong demand. Our power brands (Scorpio and Bolero) continue to do well. With the cases coming down and the gradual opening up of markets, we foresee a strong demand rebound. We are working closely with our supplier partners to manage supply chain issues and meet the market demand.”
Mahindra’s export figures for May 2021 were pretty good too, by as much as 300 percent (YoY). The automaker shipped 1,935 units last month, compared to just 484 units in May last year. However, Mahindra didn’t do as well when it came to its month-over-month (MoM) numbers. Compared to April 2021, when the automaker sold a total of 18,285 units, last month saw that decline by 53 percent. Then again, this month-over-month downfall (April 2021 vs. May 2021) will affect almost all automakers in the country. Despite the constant changes due to the pandemic, Mahindra still managed to hold nearly 7.8 percent of the market share last month.
Going forward, the Indian automaker will have to ride out the ongoing semiconductor shortage that has been plaguing the automotive industry for a while now. Therefore, even when lockdowns do lift, Mahindra will not have a smooth journey in the near future. That said, the new Thar and the upcoming new XUV range of SUVs have kept things interesting for the company. Chances are that some (if not all) of these projects will get delayed due to the aforementioned hurdles.