Mahindra Reports Car Sales Up 75 Percent YoY To Over 1.7 Lakh Units
Mahindra reported better-than-expected second-quarter profit on Friday, driven by strong demand for its passenger cars and farm equipment. The Indian carmaker posted a massive 46 percent increase in profit as vehicles sold rose 75 percent from a year ago to 174,098, while it had more than 260,000 sports car bookings. Mahindra reported a profit after tax of 20.9 billion Indian rupees in the three months ended September 30, up from 14.33 billion a year earlier.
Analysts had expected a profit of Rs, 1,988 crore, according to Refinitiv IBES data.
The company’s farm equipment business had the largest volume in the second quarter and the vehicle segment had the largest volume of the year, Mahindra said in a statement, adding that exports of cars and tractors remained strong.
While demand for passenger cars is strong, Indian automakers, including Mahindra, are seeing an increase in semiconductor shortages and raw material costs, which have hampered the industry since the pandemic.
Passenger car sales in September in India nearly doubled to 307,389 from a year ago.
Income from operations jumped 56.5 percent during the quarter to Rs. 20,839 million.
Earlier, rival Maruti Suzuki India reported a four-fold jump in quarterly profit, while Tata Motors saw its losses shrink from a year ago due to stronger demand.
Meanwhile, Germany-based Mutares has offered to acquire a controlling stake of 80 percent in Mahindra-owned Peugeot Motorcycles, the companies said on Thursday.
Earlier this week, Mahindra announced that it has tied up with three electric vehicle infrastructure partners – Jio-bp, Statiq, and Charge+Zone – to provide charging solutions for its upcoming range of electric passenger vehicles. Through this partnership, Mahindra EV users will get seamless access to fast charging infrastructure and e-mobility solutions available across availability, availability, navigation and transactions, the Mumbai-based automaker said.
© Thomson Reuters 2022