Auto Sales: M&M posts 16% sales growth in December; tractors shine with 22% boost

 Mahindra & Mahindra (M&M) wrapped up 2024 with a stellar performance, reporting a sixteen per cent year-on-year increase in total auto sales for December. The automaker sold 69,768 units across all segments, driven by robust domestic and export sales.

In the utility vehicle segment, domestic sales surged by eighteen per cent to 41,424 units, while total sales, including exports, reached 42,958 units. Commercial vehicle sales contributed 19,502 units, further cementing the company's strong domestic presence. Notably, exports saw a seventy percent jump to 3,092 vehicles compared to December 2023.

Veejay Nakra, President of the Automotive Division, highlighted the company’s achievement of being ranked first globally among auto OEMs on the Dow Jones Sustainability Index (DJSI). “This recognition is a testament to our commitment to ESG excellence,” Nakra said.

Tractor sales ride on robust agricultural demand
M&M’s Farm Equipment Sector also registered impressive growth. Domestic tractor sales reached 22,019 units, a twenty-two per cent rise year-on-year, propelled by strong agricultural sentiment and favourable reservoir levels supporting rabi sowing. Including exports, total tractor sales stood at 22,943 units, a twenty per cent increase from December 2023.

Hemant Sikka, President of the Farm Equipment Sector, attributed the growth to positive cash flows from the Kharif harvest and strong rabi season prospects. “The tractor industry is poised for continued growth, driven by favourable trade terms and a robust agricultural outlook,” Sikka noted.

Stock performance and outlook
M&M shares traded at Rs 3,018, up 0.3 per cent in early trade, adding to the stock's seventy per cent gain in 2024. Analysts anticipate sustained momentum in 2025, bolstered by the company’s diverse portfolio and strategic market initiatives.

With significant strides in both automotive and farm equipment segments, M&M is well-positioned to maintain its growth trajectory in the coming quarters.