Demonetisation affect: M&M sales fall by 22 per cent on a YOY basis

Mahindra & Mahindra (M&M) posted shocking vehicles and tractors sales numbers on Thursday--a sharp 22 per cent fall on a year on year basis when considered its sales numbers this November with November, 2015. While last month it sold 32499 units, a year back M&M had sold total 41590 units and the company indicated the sharp fall is due to demonetisation and also post festive demand moderation. The company's domestic sales had been reduced by 24 per cent while its exports posted increase of 22 per cent clearly showing demonetisation impact on the vehicle and tractor manufacturer.
 
The company's passenger utility vehicles faced the worst as on a year on year basis--it has fallen by 33 per cent while comparing the same with November, last year. Its tractor sales had fallen by 21 per cent in comparison to the corresponding period of the last year, said a company release while sharing its sales numbers. Following release of the numbers, M&M's shares in BSE had fallen by 2.02 per cent to Rs 1162 while it had recorded a day's high at Rs 1193.60. On NSE, M&M closed at Rs 1161.20 falling from its day's high pegged at Rs 1194. However, the company management had called the 'demonetisation effect' as a temporary phenomenon and also added that M&M's sales would bounce back from the present numbers. Earlier, passenger vehicles manufacturer Maruti had posted its November sales numbers, not impacted by the demonetisation, though.