M&M expects 15% hike in Domestic Market
Mahindra & Mahindra has been working good by registering a hike in December sales by 42 per cent (YoY) for 34,062 units and 1,999 tractors in export. The Vice President in Marketing, Automotive Division of Mahindra & Mahindra, Mr. Vivek Nayer was questioned on the issue. On appraising the performance marked by company from selling 26 thousand to 34 thousand units from Nov to Dec, he tried to take the situation in his perspective.
Mahindra Mahindra has been working good by registering a hike in December sales by 42 per cent (YoY) for 34,062 units and 1,999 tractors in export. The Vice President in Marketing, Automotive Division of Mahindra Mahindra, Mr. Vivek Nayer was questioned on the issue. On appraising the performance marked by company from selling 26 thousand to 34 thousand units from Nov to Dec, he tried to take the situation in his perspective.
He admitted that December was a lucrative month for the company as it was able to register a growth of striking 42 per cent. He said that targets were met because of better production capacity as against the November performance when the company had to shut down the plant for maintenance work thus December resulted in full fledged production and pent up demand was satisfied.
Mr. Nayer opined that though the Automobile industry is facing tremendous growth but sustaining the 25 to 30 per cent growth will become difficult in coming future owing to kicking in base effect. Moreover major concerns like inflation, liquidity and interest rates will further hinder the growth of Automobile industry. Keeping these factors in mind, the industry will achieve a growth of 15 to 20 per cent if no other shock pops in.
He denied to claim anything about the January to March quarter. He said that commenting on long run is not worth as variables are unstable and in short term period a growth of 15 par cent is easily achievable if no surprises comes up.
On questioning about the company's take on increasing price of automobiles in India, he commented that MM also has plans to hike up the rates by somewhere 1 per cent and individual model wise increase will be disclosed in a day or so. He said that the major reason behind the price rise id because of increasing steel prices and other input cost.
He said that company is doing good in all segments and will further expect growth in tractor sales owing to factors like decent monsoon and agriculture growth.
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