Mahindra clocks all-time high SUV sales, driven by Thar ROXX frenzy

Mahindra & Mahindra Ltd. (M&M), one of India‘s leading automotive giants, announced on November 1st, 2024, a historic milestone for the company, with its total vehicle sales reaching an unprecedented figure of 96,648 units in October 2024. This includes 54,504 utility vehicles sold in the domestic market, marking a remarkable 25% year-on-year growth in the SUV segment.

According to Veejay Nakra, President of Mahindra’s Automotive Division, the company experienced its highest-ever SUV sales this October, attributing the surge to high consumer demand, particularly for the new Thar ROXX model. Nakra highlighted that the Thar ROXX received over 170,000 bookings within just an hour of its release, reflecting the consumer excitement that significantly boosted Mahindra’s sales momentum during the festive season.

In the overall commercial vehicle segment, Mahindra reported domestic sales of 28,812 units for the month. Furthermore, Mahindra’s exports stood at 3,506 units, showcasing an 89% growth compared to the same period last year. The figures highlight Mahindra’s success in both domestic and international markets, strengthening its global footprint.

A Record-Setting Month for Farm Equipment Sales

Mahindra’s Farm Equipment Sector (FES) also posted robust sales, setting a new record in tractor sales. In October 2024, Mahindra sold 64,326 tractors in the domestic market, representing a 30% increase from the 49,336 units sold during October 2023. Hemant Sikka, President of Mahindra’s Farm Equipment Sector, attributed this growth to favorable market conditions, including a strong monsoon, an excellent Kharif crop, and an uptick in Minimum Support Prices (MSP) for Rabi crops.

Sikka indicated that strong sales during the festive season and favorable agricultural conditions were the primary drivers behind the surge in demand. He also mentioned that the company expects this positive trend to continue, given the high reservoir levels and overall market optimism.

Commercial Vehicle Sales: A Mixed Bag

Mahindra’s Commercial Vehicles and 3-Wheelers segment also reported varied performance. The sales for Light Commercial Vehicles (LCVs) between 2 to 3.5 tonnes grew by 17%, with 23,893 units sold, while the segment for LCVs below 2 tonnes witnessed a decline of 9%, recording 3,935 units. Mahindra’s heavy commercial vehicles also saw a 5% dip year-on-year, selling 984 units.

However, the 3-Wheelers category, including electric variants, saw positive growth, achieving 9,826 units in sales, which is a 5% increase compared to the previous year. This demonstrates Mahindra’s expanding influence in the electric mobility market.

Expert Insight: Factors Driving Mahindra’s Success

Industry analysts suggest that Mahindra’s record-breaking performance is underpinned by strong product offerings and market-driven strategies. Automotive analyst, Rajiv Mehta, noted that the Thar ROXX was perfectly timed for the festive season, attracting a massive customer base. Mehta also highlighted the company’s strategic push towards electric mobility and its diversified product lineup as major contributors to its recent success.

Additionally, Mahindra’s farm equipment sales were buoyed by favorable agricultural factors, including government policies supporting higher crop prices, which directly impacted farmers’ purchasing power. This focus on rural prosperity has been a key driver for Mahindra, given its leadership position in the farm equipment market.

Stock Market Sentiments Reflecting Success

Mahindra’s recent performance has positively impacted its stock, which saw a 3.5% rise after the announcement. Market sentiment around Mahindra & Mahindra shares is optimistic, with analysts predicting a potential upside due to the company’s impressive growth across both its automotive and farm equipment sectors. Investors appear encouraged by the strong sales figures, especially given the growth in electric vehicles and sustainable farming solutions, positioning Mahindra well for continued success.