Rural Markets Will See Boost In Sales During Festive Season, Says M&M’s Veejay Nakra

Mahindra & Mahindra Ltd. is confident of maintaining strong sales numbers as the upcoming festive season is expected to shore up rural demand, said Veejay Nakra, the company’s automotive division president. 

Mahindra sold 43,277 units in August, marking a 16% year-on-year growth. Attributing the robust sales to the build-up to the festive season, Nakra said. SUVs led the demand. 

The sport utility vehicle industry is growing and there are ample signs that the festive season will be good, he told NDTV Profit.

“If I look back a couple of months ago, there were elections, the budget and a strong summer due to which walk-ins were low. But, as we start moving into the festive season with a very strong monsoon, it augurs well for a strong upcoming festive season,” the senior executive said.

Mahindra’s XUV 3XO, which launched recently at a starting price of Rs 7.5 lakh, is seeing a strong enquiry and booking pipeline, Nakra revealed.

“A lot of the 3XO numbers have been supported in the urban and semi-urban markets,” he said.

Nakra expects rural sales to pick up soon. 

“A large part of rural sales is related to agri and two-wheelers, which is linked to monsoon. Like I said, I think we will see a good pick-up in rural sales as we go into the festive season,” he said.

The top executive clarified that the buoyant sales numbers are organic and not driven by any discount by the automaker. 

“Discounts are not way out of proportion, it is very much in line with what one would typically do as you get into this season. It’s not disproportionate discounts that are driving the retail sales of the business,” he said.

Veejay Nakra predicted the Mahindra Thar Roxx to record high sales numbers with flowing pre-booking inquiries for the SUV. The five-door version of the popular Mahindra Thar SUV was launched on Aug. 15, with deliveries expected to begin next month.