M&M total sales up nearly 16% in February

Mahindra & Mahindra (M&M) on Tuesday reported 15.7% increase in total sales to 44,002 units in February as against 38,030 units sold in the same month of last year.

In the domestic market, the company's sales were up 18.41% to 41,348 units last month as compared to 34,918 units in February 2015, M&M said in a statement. 

The company's exports, however, declined by 14.71% to 2,654 units last month as against 3,112 units in February last year, it added.

Its sales of passenger vehicles, including Scorpio, XUV 500, Xylo, Bolero and Verito, were up 26.99% to 22,612 units as compared with 17,805 units in February 2015.

The company's commercial vehicle sales surged 16% to 13,864 units last month as against 11,945 units in the year-ago period, M&M said.

M&M's Chief Executive (Automotive division) Pravin Shah said the growth has been on the back of the company's range of passenger and commercial vehicles.

"The imposition of an infrastructure cess of 1% to 4% for passenger vehicles as announced in the Union Budget 2016-17 would increase the prices of automotive products immediately," Shah said.

He further said, "An increasing number of duties levied on automobiles is a cause of concern and we see the need for good and services tax (GST) sooner than later."

"However, we need to take it positively, in view of the strong emphasis laid on rural, agriculture and infrastructure plans for sound, sustainable and inclusive growth in the economy and to spur the much-needed demand," Shah added. 

 On Wednesday, at 1051 hours, the shares of Mahindra & Mahindra were trading down 2.84% or Rs 36.00 at Rs 1230.25 per scrip on the BSE.