70,350 Vehicles Sold In August: M&M Stock Hits New 52-Week High On Posting Highest-Ever SUV Sales

Auto giant, Mahindra & Mahindra (M&M) share price rallied significantly to hit a new 52-week high on Friday after the company released its August month sales figures. The sharp rise in stock was driven due to M&M recording the highest-ever SUVs sales in the month under review. While its overall monthly sales recorded double-digit growth.

At the time of writing, M&M stock surged by Rs 15.55 or 0.99% to trade at Rs 1591.65 apiece. The stock gained by at least 1.81% in the day by hitting a new 52-week high of Rs 1,604.55 apiece.

At the current market price, M&M's market cap was nearly Rs 1.98 lakh crore.

In August 2023, M&M, one of India's leading automotive companies, recorded overall auto sales of 70,350 vehicles, a growth of 19%, including exports.

In the Utility Vehicles segment, Mahindra sold its highest-ever SUVs 37,270 vehicles in the month, in the domestic market, and overall, 38,164 vehicles, including exports. The domestic sales for Commercial Vehicles stood at 23,613 units.

Veejay Nakra, President, Automotive Division, M&M Ltd., "We are excited to witness another record month, as we clocked our highest-ever SUV domestic sales of 37,270 in a month with a growth of 26%. We also registered an overall growth of 19% for the month of August."

Interestingly, M&M did not sell any cars and vans in August 2023 under the passenger vehicles category. A year ago same month, the company sold 336 cars.

Overall, passenger vehicles sold were 37,270 units in August 2023, up by 25% YoY.

However, total exports were at 2,423 units, declining by 17% YoY in August. FY24 YTD exports are at 11,897 units, declining by 10% YoY.

From April to August of FY24, Mahindra sold 1,73,637 SUVs, registering a growth of a whopping 31% from sales of 1,32,790 units in the corresponding period a year ago. Surprisingly, Mahindra sold only 10 cars including vans in five months of FY24, compared to 1,425 units in the FY23 (April to August) period, down by a massive 99% YoY. Hence, total passenger vehicles FY24 YTD sales stood at 1,73,647 units, rising by 29%.

Going ahead, Nakra added, "While demand for our key SUV brands continues to be strong, we are keeping a close watch on the availability of semi-conductors and select parts, for sustained and smooth scaleup."

Founded in 1945, the Mahindra Group is one of the largest and most admired multinational federations of companies with 260,000 employees in over 100 countries. It enjoys a leadership position in farm equipment, utility vehicles, information technology and financial services in India and is the world's largest tractor company by volume. It has a strong presence in renewable energy, agriculture, logistics, hospitality and real estate.