The world's largest tractor maker by volume sales, Mahindra has seen a slump in sales due to lack of demand because of the delayed monsoon. Mahindra expected sales to grow 5 percent this financial year.
Pawan Goenka, the President of Mahindra's Automotive and Farm Equipment Sector said that in spite of improvement, this drop in sales was because of the delayed monsoon. He said there is already a loss of sowing, so agricultural output will be less this year.
According to data by Thomson Reuters, Mahindra's net profit declined 6 percent to INR 8.82 billion during the quarter ending in June from INR 9.38 billion last year. They expected a profit of INR 8.36 billion.
The overall sales for Mahindra went up about 2 percent to INR 100.96 billion in the quarter compared to the same period a year ago. The passenger vehicle segment dropped by 12 percent.
This is due to growing competition from other automakers such as Ford and Nissan whose passenger utility vehicles are selling more than those by Mahindra.
The Indian car maker Mahindra, earlier said that they will launch three passenger vehicles along with two commercial vehicles over a period of 15 months to bring up their sales and market share.
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